Shri Hemant Keshav Dhawle, Indore V. The Dy. CIT, Indore

ITA 536/IND/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 2820 (ITAT-INDORE)
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2010
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 30-11-2009
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: APARNA KARAN
• Assessee Lawyers: RAJESH BANSAL
• Keywords: Depreciation; Business expenditure

Judgement Text

PAGE 1 OF 3 - I.T.A.NO. 536/IND/2009 SHRI HEMANT KESHAV DHAWLE, INDORE. IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH : INDORE BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER AND SHRI V.K. GUPTA, ACCOUNTANT MEMBER PAN NO. : AIGPG 6155 I.T.A.NO. 536/IND/2009 A.Y. : 2006-07 SHRI HEMANT KESHAV DHAWLE, DY. CIT, B.BANSAL & CO., C.A., 2, RATLAM KOTHI, INDORE VS 1(1), INDORE. APPELLANT RESPONDENT APPELLANT BY : SHRI RAJESH BANSAL, C. A. RESPONDENT BY : SMT. APARNA KARAN, SR. DR DATE OF HEARING : 31.05.2010 O R D E R PER V.K. GUPTA, A.M. THIS APPEAL FILED BY THE ASSESSEE ARISES OUT OF ORD ER OF THE LD. CIT(A)-I, INDORE, DATED 27.8.2009, FOR THE ASSESSME NT YEAR 2006-07. 2. WE HAVE HEARD BOTH THE PARTIES AND HAVE ALSO PERUSE D THE MATERIAL AVAILABLE ON RECORD. 3. IN THIS APPEAL, THE ASSESSEE IS AGGRIEVED BY DISALL OWANCES MADE BY THE ASSESSING OFFICER ON ACCOUNT OF LOW HOUSE HO LD WITHDRAWALS TO THE TUNE OF RS.1,18,912/-AND ON ACCOUNT OF PERSONAL EXP ENSES TO THE TUNE OF RS. 65,716/-CLAIMED AGAINST THE TAXABLE INCOME. PAGE 2 OF 3 - I.T.A.NO. 536/IND/2009 SHRI HEMANT KESHAV DHAWLE, INDORE. 4. THE FACTS, IN BRIEF, ARE THAT THE AO ESTIMATED HOUS E HOLD EXPENSES AT RS.20,000/- PER MONTH HAVING REGARD TO THE FAMILY AND STATUS OF THE ASSESSEE AND MADE AN ADDITION OF RS. 1,18,91 2/- AS THE ASSESSEE HAD SHOWN HOUSE HOLD EXPENSES AT RS.1,21,088/- FOR A FA MILY OF FOUR PERSONS. THE AO ALSO DISALLOWED 50 % OF DRIVERS SALARY, CAR INSURANCE, DEPRECIATION, CONVEYANCE EXPENSES AND TELEPHONE EXP ENSES ON ACCOUNT OF ELEMENT OF PERSONAL USE AND MADE AN ADDITION OF RS. 65,716/- ON THIS ACCOUNT. AGGRIEVED BY THIS, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE LD. CIT(A), WHEREIN THE ASSESSEE MADE DETAILED SUBMISS IONS AS REGARD TO MODE OF LIVING. IT WAS ALSO CONTENDED THAT OTHER AD ULT FAMILY MEMBERS ALSO CONTRIBUTED TO THEIR PERSONAL EXPENSES. HENCE, NO CASE FOR ANY DISALLOWANCE. THE LD. CIT(A), HOWEVER, CONFIRMED TH E ACTION OF THE AO IN REGARD TO LOW HOUSE HOLD WITHDRAWALS AS WELL AS OUT OF VARIOUS EXPENSES ON ACCOUNT OF PERSONAL USE AS THE ASSESSEE FAILED TO CONTROVERT THE FINDINGS OF THE AO IN THIS REGARD. STILL AGGRIE VED, THE ASSESSEE IS IN APPEAL BEFORE US. 5. THE LEARNED COUNSEL NARRATED THE FACTS AND SUBMIT TED THAT CONTRIBUTION BY OTHER FAMILY MEMBERS OR THE FACT TH AT THEY MET OUT THEIR PERSONAL EXPENSES ON THEIR OWN WAS TOTALLY IGNORED BY THE REVENUE AUTHORITIES. IT WAS ALSO CONTENDED THAT IF THE FACT OF BUSINESS EXPENSES BEING DISALLOWED ON ACCOUNT OF PERSONAL USE WAS ALS O CONSIDERED, THEN IT PAGE 3 OF 3 - I.T.A.NO. 536/IND/2009 SHRI HEMANT KESHAV DHAWLE, INDORE. WAS A CASE OF DOUBLE DISALLOWANCE. THE LEARNED SENI OR DEPARTMENTAL REPRESENTATIVE, ,ON THE OTHER HAND, PREFERRED TO RE LY ON THE ORDER OF THE LD. CIT(A). 6. WE HAVE CONSIDERED THE SUBMISSIONS MADE BY BOTH THE SIDES, MATERIAL ON RECORD AND THE ORDERS OF THE AUTHORITIE S BELOW. 7. IT IS NOTED THAT IT IS A CASE WHERE THE ADDITION HA S BEEN MADE ON ACCOUNT OF LOW HOUSE HOLD WITHDRAWALS AS WELL AS ON ACCOUNT OF PERSONAL EXPENSES BEING CLAIMED AS BUSINESS EXPENSES. IN OUR VIEW, BOTH THESE TWO THINGS CANNOT GO SIMULTANEOUSLY. IN OUR OPINION, IN THE ABSENCE OF DOCUMENTARY EVIDENCE, THE DISALLOWANCE MADE OUT OF BUSINESS EXPENSES ON ACCOUNT OF PERSONAL USE IS LIABLE TO BE SUSTAINE D AND, THEREFORE, HAVING REGARD TO SUCH DISALLOWANCE AS WELL AS THE FACT OF CONTRIBUTION BY OTHER MEMBERS ALSO TOWARDS LOSS AND EXPENSES, THERE IS NO BASIS FOR MAKING ANY DISALLOWANCE OUT OF HOUSE HOLD EXPENSES. ACCORDINGL Y, WE DELETE THE DISALLOWANCE OF RS. 1.18,912/- AND CONFIRM THE DISA LLOWANCE OF RS. 65,716/-. THUS, THIS APPEAL OF THE ASSESSEE STANDS PARTLY ALLOWED. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 31 ST MAY, 2010. SD/- SD/- (JOGINDER SINGH) (V. K. GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 31 ST MAY, 2010. CPU* 315