TMI Blog2022 (11) TMI 302X X X X Extracts X X X X X X X X Extracts X X X X ..... er relief. No merit in the appeal filed by assessee before tribunal on this issue, which now stand dismissed. Disallowance of drawings for household expenses - AO estimated household drawing expenses of Rs.20,000/- per month - HELD THAT:- Keeping in view that we are presently concerned with financial year 2012-13 , the drawings towards household expenses to the tune of Rs.10,000/- per month is quite justifiable and is reasonable , more-so keeping in view status of the assessee that he is retailer of Bharat Petroleum Corp. Ltd. and having a petrol filing station , of which the annual turnover was substantial to the tune of Rs.11.77 crores during the year under consideration and in my view , drawings for household expenses of Rs.10,000/- per month is quite reasonable . Thus , in nutshell, the assessee is not entitled for any further relief towards estimation of household expenses . This disposes ground number 5, which now stands dismissed. - ITA No. 173/Vns/2019 - - - Dated:- 29-8-2022 - SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER Appellant by: None Respondent by: Shri A.K. Singh, Sr. DR ORDER This appeal, filed by assessee, being ITA No.173/Vns/2019 for asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elding Rs.184941/-(12 %) which is highly excessive and liable to be deleted/reduced. 5. Because the learned CIT(A)was not justified in restricting the addition for low withdrawal Rs..120000/- i.e. 10000/-per month as against 61000/-claimed by the assessee. Assessee is unmarried individual and lives in village. The addition sustained by ld. CIT(A) is excessive and liable to be deleted/reduced. 3. The brief facts of the case are that the assessee is proprietor of M/s Sarthak Filling Station and retailer of Bharat Petroleum Corp. Ltd. and deals in petrol, diesel etc. .The assessee filed its return of income in the status of individual declaring income of Rs.5,24,350/-. During the relevant assessment year. The assessee declared total sales of Rs.11,77,51,789/- and Gross Profit declared was at Rs.26,71,149/- i.e. 2.27% and Net Profit declared was at Rs.5,44,351/- i.e. 0.46%. The case was selected by Revenue for framing scrutiny assessment u/s. 143(3) read with Section 143(2) of the 1961 Act. The assessee was called upon by AO during assessment proceedings to produce various details and the books of account. The AO conducted test check of purchases made by the assessee, whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able which were incurred for business purposes. The ld. CIT(A) observed that assessee has filed copy of ledger accounts of these sales and administrative . The ld. CIT(A) also observed that assessee failed to produce supporting bills/vouchers to substantiate these expenses . The ld. CIT(A) also observed that assessee has admitted that vouchers/ bills are not available , granted relief to the assessee and restricted disallowance to Rs.1,84,941/- as against disallowance of Rs.3,69,888/- made by the Assessing Officer, vide appellate order dated 09th May, 2019 passed by ld. CIT(A) . 4.2. So far as drawings for household expenses are concerned, the ld. CIT(A) observed that the additions made by AO are excessive. The ld. CIT(A) observed that the assessee is unmarried and stay in ancestral house at village , and thus ld. CIT(A) restricted the additions to the income towards drawings for household expenses to Rs.10,000/- per month, as against Rs.20,000/- per month estimated by the Assessing Officer, which led to the relief of Rs.1,20,000/- being granted by ld. CIT(A) to the assessee and additions to the tune of Rs.59,000/- towards drawings for household expenses was confirmed by ld. CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prayer were made to confirm the appellate order passed by ld. CIT(A). 6.2 On the second issue, the ld. Sr. DR submitted that the assessee was having a turnover Rs.11.77 crores. The assessee is proprietor of M/s Sarthak Filling Station and retailer of Bharat Petroleum Corp. Ltd. which is engaged and deals in petrol, diesel etc. . Thus, keeping in view assessee s status , the Assessing Officer has estimated household expenses of Rs.20,000/- per month which is quite reasonable as against household drawing of Rs.61,000/- shown by the assessee . The ld. Sr. DR submitted that ld. CIT(A) has already granted substantial relief to the assessee . The ld. CIT(A) estimate household expenses of the assessee at Rs.10,000/- per month , keeping in view that the assessee lives in the ancestral household in village and is unmarried . The ld. Sr. DR made prayers to uphold the appellate order passed by ld. CIT(A). 7. I have considered the contentions of ld. Sr. DR and carefully perused the material available on record. I have observed that the assessee is an individual who is proprietor of M/s Sarthak Filling Station and retailer of Bharat Petroleum Corp. Ltd. and deals in petrol, diesel etc.. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to substantiate that sale and administrative expenses to the tune of Rs. 14,79,532/- were incurred wholly and exclusively for purposes of business of the assessee. The only contention raised by assessee is that its pump/filing station for petrol, diesel etc. is in remote area and no bills /vouchers for expenses are available. Even , the accountant of the assessee has stated before AO that he makes entries for these expenses in cash books based upon instructions of the owner of the pump and no bills/vouchers for expenses are available with him. Similarly, he stated that no salary register is available. The sale of the assessee is Rs. 11.77 crores which could not be said to be small amount. The primary onus was on the assessee to produce vouchers/bills for these expenses to substantiate that these expenses were incurred wholly and exclusively for the purposes of business of the assessee,which the assessee failed to discharge. The department has rightly relied upon decision of Hon ble Allahabad High Court in the case of Rimjhim Ispat Ltd. (supra). Under the aforesaid facts and circumstances, estimate of the disallowance has to be made which should be fair, reasonable and honest. Keep ..... X X X X Extracts X X X X X X X X Extracts X X X X
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