TMI Blog2019 (3) TMI 1302X X X X Extracts X X X X X X X X Extracts X X X X ..... ent that son was helping his father. But on the basis of their statement, he harboured a belief that father of the family members of the assessee might have inflated the expenditure by debiting the same in their names. After considering details, we are of the view that possibility of helping her husband by Usha Chauhan and Shri Harish Chauhan helping his father in his business cannot be ruled out. They may not be well aware about the bills issued in their names, but they have confirmed that they are attending to the business needs and helping the assessee in his proprietorship concerns. AO ought to have appreciated this aspect keeping in mind smallness of the business, which is not in an organized sector. It is not new that family m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. First we take quantum appeal i.e. ITA No.961/Ahd/2017. 3. Brief facts of the case are that the assessee is an individual. He was running two proprietorship concerns viz. Raj Enterprise and Power Plan Engineering Co. He has filed his return of income on 27.9.2008 showing total income at ₹ 32,63,340/-. On scrutiny of the accounts it revealed to the AO that the assessee has debited labour expenses of ₹ 11,68,775/- to the profit loss account of Power Plan Engg. Co. These expenditures were debited under three heads viz. Sagar Chauhan, Usha Chauhan and Utkarsh Enterprise. As far as Utkarsh Enterprise is concerned, the ld.AO has allowed those expenditure. However, he disallowed labour expenditure debited qua Shri Harish Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ruled out. They may not be well aware about the bills issued in their names, but they have confirmed that they are attending to the business needs and helping the assessee in his proprietorship concerns. The AO ought to have appreciated this aspect keeping in mind smallness of the business, which is not in an organized sector. It is not new that family members helping each other in doing business in their proprietor-ship concerns. If some salary is attributable to them on their working, then it should not be doubted simply for the reason that those family members are not aware about the raising of bills in their names. To our mind, the AO is too theoretical instead of appreciating the reality of the business of such family proprietorship co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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