MONISHA R. JAISING, MUMBAI V. ACIT 19(3), MUMBAI

ITA 201/MUM/2010

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 3948 (ITAT-MUMBAI)
• Duration Of Justice: 9 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-11-2010
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 28-10-2010
• Assessment Year: 2006-2007
• Appeal Filed On: 08-01-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S K MAHAPATRA
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI. BEFORE SHRI R.V.EASWAR, PRESIDENT AND SHRI R.S. SYA L, AM I.T.A.NO.201/MUM/2010 (ASSESSMENT YEAR: 2006-07) SMT. MONISHA R.JAISING, 20/21, B CHAND TERRACES, ST.ANDREWS ROAD, BANDRA(W), MUMBAI-400 050. PAN:ADRPJ4593R VS. THE ASSISTANT COMMISSIONER OF INCOME TAX, 19(3) MUMBAI. (APPELLANT) (RESPONDENT) APPELLANT BY : MR. ANKIT AGRAWAL, RESPONDENT BY : MR. S.K.MAHAPATRA, DR O R D E R PER R.V.EASWAR, PRESIDENT: THIS APPEAL BY THE ASSESSEE RELATES TO THE ASSESSMENT YEAR 2006-07 AND ARISES O UT OF THE ASSESSMENT MADE UNDER SECTION 143(3) OF THE INCOME TAX ACT BY ORDER DATED 24.12.2008. THE ASSESSEE IS AN INDIVIDU AL ENGAGED IN THE MANUFACTURE AND SALE OF DESIGNER GARMENTS. S HE IS ALSO IN RECEIPT OF PROPERTY INCOME, SOME CAPITAL GAINS AND INCOME FROM OTHER SOURCES. 2. THE FIRST GROUND IS DIRECTED AGAINST THE DISALLO WANCE OF 20% OF THE CONVEYANCE EXPENSES, BUSINESS PROMOTION EXPENSES AND OTHER WELFARE EXPENSES. THE ASSESSEE HAS FILED A CHART BEFORE US SHOWING THE RELEVANT DETAILS. THE EXPEN SES INCURRED UNDER THESE HEADS RESPECTIVELY ARE RS.1,85,697/-, RS.3,12,501/- AND RS.97,349/- RESPECTIVELY, OUT OF WHICH 20% IS DISALLOWED BY THE ASSESSING OFFICER AND SUSTAINE D BY THE CIT(A). ACCORDING TO THE CHART, THE EXPENSES AMOUNT ONLY TO RS.15,475/-,RS.26,042/- AND RS.8,112/- ON AN AVERAG E PER MONTH AND THE DAILY AVERAGE IS RS.509/- RS.856/- AN D RS.267/- RESPECTIVELY. THE ASSESSEE HAS DECLARED AN INCOME O F ITA NO.201/M/10 2 RS.59,61,416/- OUT OF WHICH THE INCOME FROM BUSINES S IS RS.56,35,563/-. CONSIDERING THE VOLUME OF INCOME AN D THE AVERAGE DAILY/MONTHLY EXPENSES UNDER THESE THREE HE ADS AND HAVING REGARD TO THE NATURE OF THE ASSESSEES BUSIN ESS, WE DO NOT FIND THEM TO BE UNREASONABLE OR EXCESSIVE. FURT HER NO SPECIFIC INSTANCES OF ANY INFLATION OF THE EXPENSES HAVE BEEN POINTED OUT. WE THEREFORE DELETE THE DISALLOWANCES AND ALLOW THE FIRST GROUND. 3. SO FAR AS THE SECOND GROUND IS CONCERNED, IT IS AGAINST THE DISALLOWANCE OF 20% OF THE VEHICLE EXPENSES OF RS. 2,12,916/-. THE AVERAGE MONTHLY AND DAILY EXPENSES AS PER THE C HART FILED BY THE ASSESSEE CAN BE RS.17,743/- AND RS.583/- RES PECTIVELY. SOME PERSONAL USE OF THE VEHICLE CANNOT BE RULED OU T. HOWEVER, THE DISALLOWANCE MADE SEEMS TO BE ON THE HIGHER SID E. WE REDUCE THE SAME TO 10% OF THE EXPENSES AND ALLOW TH E GROUND IN PART. 4. THE THIRD GROUND RELATES TO DISALLOWANCE OF 15% OF THE TELEPHONE EXPENSES OF RS.1,27,300/-. THOUGH CONSIDE RING THE NATURE OF THE ASSESSEES BUSINESS, THE EXPENSES SEE M TO BE REASONABLE, SOME PERSONAL USE OF THE TELEPHONE CANN OT BE RULED OUT. WE HOWEVER REDUCE SUCH PERSONAL USE TO 10% OF THE TELEPHONE EXPENSES AND ALLOW THE GROUND IN PART. 5. IN THE RESULT, THE APPEAL IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 4 TH DAY OF NOVEMBER, 2010. SD/- ( R.S. SYAL ) SD/- ( R.V.EASWAR ) ACCO UNTANT MEMBER PRESIDENT MUMBAI, DATED 4 TH NOVEMBER, 2010. SOMU ITA NO.201/M/10 3 COPY TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT-CITY-19,MUMBAI. 4. THE CIT(A)-30, MUMBAI 5. THE DR B BENCH /TRUE COPY/ BY ORDE R ASSTT. REGISTRAR, I.T.A.T, MUMBAI