Sh. Devendra Kumar Gupta & Sons (HUF), Yamunanagar V. DCIT, Yamunanagar

ITA 185/CHANDI/2011

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 1284 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-03-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 17-02-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: N K SAINI
• Keywords: Depreciation
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES A CHANDIGARH BEFORE SHRI D.K.SRIVASTAVA, ACCOUNTANT MEMBER AND MS SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO. 185/CHD/2011 ASSESSMENT YEAR: 2006-07 SHRI DEVENDRA KUMAR GUPTA & SONS, VS THE DCIT, PROPRIETOR M/S UPPER INDIA SMELTING CIRCLE, & REFINERY WORKS, YAMUNANAGAR YAMUNANAGAR PAN NO. AABHD6764K (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI TEJ MOHAN SINGH / SHRI D.K.GUP TA RESPONDENT BY: SHRI N.K.SAINI ORDER PER SUSHMA CHOWLA, JM THE APPEAL BY THE ASSESSEE IS AGAINST THE ORDER OF CIT(A), KARNAL RELATING TO ASSESSMENT YEAR 2006-07 AGAINST THE ORD ER PASSED UNDER SECTION 143(3) OF THE I.T. ACT. 2. THE GROUND NO. 1, 2 & 5 RAISED BY THE ASSESSEE A RE NOT PRESSED, HENCE, THE SAME ARE DISMISSED AS NOT PRESSED. 2 3. THE GROUND NO.3 RAISED BY THE ASSESSEE IS AGAINS T THE DISALLOWANCE OF 20% OF THE EXPENSES CLAIMED FOR TELEPHONE, VEHIC LE RUNNING EXPENSES AND CAR DEPRECIATION AMOUNTING TO RS. 66,714/-. 4. THE LD. AR FOR THE ASSESSEE POINTED OUT THAT IN THE SUCCEEDING YEAR THE TRIBUNAL HAD RESTRICTED THE DISALLOWANCE TO 10% OF THE SAID EXPENDITURE. THE LD. DR PLACED RELIANCE ON THE ORD ER OF CIT(A). 5. WE FIND THAT THE TRIBUNAL IN ITA NO. 1225/CHD/20 10 IN THE CASE OF THE ASSESSEE RELATING TO ASSESSMENT YEAR 2007-08 VI DE ORDER DATED 8.12.2010 HAD RESTRICTED THE DISALLOWANCE TO THE 1/ 10 TH TO THE EXTENT OF 10% OF TELEPHONE, VEHICLE RUNNING EXPENSES AND CAR DEPRECIATION ON ACCOUNT OF PERSONAL USE. THE GROUND NO. 3 RAISED B Y THE ASSESSEE IS THUS PARTLY ALLOWED. FOLLOWING THE ABOVE SAID RATIO, WE RESTRICT THE DISALLOWANCE TO 1/10 TH OF TELEPHONE, VEHICLE RUNNING EXPENSES AND CAR DEPRECIATION ON ACCOUNT OF PERSONAL USE. 6. THE ISSUE IN GROUND NO.4 RAISED BY THE ASSESSEE IS AGAINST DISALLOWANCE OUT OF FESTIVAL EXPENSES, OFFICE MAINT ENANCE EXPENSES, FREIGHT AND CARTAGE EXPENSES EQUIVALENT TO SUM OF RS. 60,000/-. 7. THE LD. AR POINTED OUT IS THAT THE DISALLOWANCE IS PURELY ADHOC AND NO SUCH DISALLOWANCE WAS MADE IN THE SUCCEEDING YEAR. WE FIND THE ASSESSING OFFICER TO HAVE DISALLOWED THE AFORESAID EXPENDITURE BECAUSE OF THE NATURE OF ACCOUNTS NOT BEING PROPERLY MAINTAINE D BY THE ASSESSEE. THE VOUCHERS PRODUCED BY THE ASSESSEE IN CONNECTION WIT H THE SAID EXPENDITURE WERE FOUND TO BE INCOMPLETE, ACCORDINGLY, THE AFORE SAID DISALLOWANCE OF RS. 60,000/-. IN THE ENTIRETY OF FACTS AND CIRCUMS TANCES OF THE CASE, WE 3 RESTRICT THE SAID DISALLOWANCE TO RS. 20,000/- AND THE GROUND OF APPEAL NO.4 RAISED BY THE ASSESSEE IS THUS PARTY ALLOWED. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS THUS PA RTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 30 TH DAY OF MARCH, 2011. SD/- SD/- (D.K.SRIVASTAVA) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 30 TH MARCH, 2011 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR