Shri Ravinder Kumar Ahuja HUF, New Delhi V. ACIT, New Delhi

ITA 5464/DEL/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 0689 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-09-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 07-09-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: JANARDAN DASS SENIOR
• Assessee Lawyers: P J KHANNA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH A : NEW DELHI) BEFORE HONBLE PRESIDENT, SHRI G.D. AGRAWAL AND SHRI KULDIP SINGH, JUDICIAL MEMBER ITA NO.5464/DEL./2015 (ASSESSMENT YEAR : 2011-12) SHRI RAVINDER KUMAR AHUJA (HUF), VS. ACIT, CIRCLE 5 0 (1), GROUND FLOOR, NEW DELHI. 17, SOUTH PATEL NAGAR, NEW DELHI 110 008. (PAN : AAAHR2891E) (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI P.J. KHANNA, CA REVENUE BY : SHRI JANARDAN DASS, SENIOR DR DATE OF HEARING : 09.09.2018 DATE OF ORDER : 17.09.2018 O R D E R PER KULDIP SINGH, ACCOUNTANT MEMBER : THE APPELLANT, SHRI RAVINDER KUMAR AHUJA (HUF) (HER EINAFTER REFERRED TO AS THE ASSESSEE) BY FILING THE PRESE NT APPEAL, SOUGHT TO SET ASIDE THE IMPUGNED ORDER DATED 11.04.2014 PASSED BY LD. CIT (APPEALS)-17, NEW DELHI QUA THE ASSESSMENT YEAR 201 1-12 ON THE GROUNDS INTER ALIA THAT :- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE APPELLATE AUTHORITY HAS ERRED IN UPHOLDING ADDITION OF RS.1,53,270/- OUT OF TELEPHONE, MOTOR CAR MAINTENAN CE AND TRAVELLING EXPENSES FOR PERSONAL USE BY THE APPELLA NT. ITA NO.5464/DEL./2015 2 2. BRIEFLY STATED THE FACTS NECESSARY FOR ADJUDICA TION OF THE CONTROVERSY AT HAND ARE : ASSESSEE HAS DECLARED TOT AL INCOME OF RS.1,43,56,716/- DURING THE YEAR UNDER ASSESSMENT. DURING THE ASSESSMENT PROCEEDINGS, ASSESSING OFFICER NOTICED E XPENSES OF RS.3,10,074/-, RS.6,04,438/- AND RS.9.18,183/- ON A CCOUNT OF TELEPHONE EXPENSES, VEHICLE RUNNING EXPENSES AND TRAVELLING E XPENSES RESPECTIVELY. DECLINING THE CONTENTIONS OF THE ASS ESSEE, AO DISALLOWED 10% OF THE AMOUNT INCURRED ON THESE EXPENSES ON ACC OUNT OF ELEMENT OF PERSONAL EXPENSES AND MADE ADDITION OF RS.1,83,270/ - TO THE TOTAL INCOME OF THE ASSESSEE. 3. ASSESSEE CARRIED THE MATTER BY WAY OF APPEAL BEF ORE THE LD. CIT (A) WHO HAS PARTLY ALLOWED THE APPEAL. FEELING AGGR IEVED, THE ASSESSEE HAS COME UP BEFORE THE TRIBUNAL BY WAY OF FILING TH E PRESENT APPEAL. 4. WE HAVE HEARD THE LD. AUTHORIZED REPRESENTATIVES OF THE PARTIES TO THE APPEAL, GONE THROUGH THE DOCUMENTS RELIED UP ON AND ORDERS PASSED BY THE REVENUE AUTHORITIES BELOW IN THE LIGHT OF TH E FACTS AND CIRCUMSTANCES OF THE CASE. 5. UNDISPUTEDLY, AS AGAINST THE TOTAL ADDITION OF R S.1,83,270/- ON ACCOUNT OF TELEPHONE, TRAVELING ETC. EXPENSES MADE BY AO , THE ASSESSEE HAD SUO MOTU DISALLOWED AN AMOUNT OF RS.30,000/- ON ACCOUNT OF TELEPHONE FOR PERSONAL EXPENSES AND ON CAR MAINTENA NCE FOR PERSONAL USE (RS.5,000/- + RS.25,000/-). IT IS ALSO NOT IN DISP UTE THAT THE AO HAS NOT SET OFF THESE SUO MOTU DISALLOWANCE OF RS.30,000/- MADE BY THE ASSESSEE ITA NO.5464/DEL./2015 3 WHILE DISALLOWING THE 10% OF THE EXPENSES ON ACCOUN T OF ELEMENT OF PERSONAL USE. IT IS ALSO NOT IN DISPUTE THAT THE L D. CIT (A) BY GRANTING PART RELIEF HAS GIVEN THE SET OFF OF RS.30,000/- SU O MOTO DISALLOWED BY THE ASSESSEE FROM THE TOTAL DISALLOWANCE MADE BY AO . 6. IN THE BACKDROP OF THE AFORESAID FACTS AND CIRCU MSTANCES OF THE CASE WE ARE OF THE CONSIDERED VIEW THAT IN CASE OF TURNOVER OF RS.1,43,56,716/-, ELEMENT OF PERSONAL USE OF TELEPH ONE, VEHICLE AND TRAVELLING CANNOT BE RULED OUT TO THE EXTENT OF 10% OF THE SAID EXPENSES DISALLOWED BY THE AO. CIT (A) HAS RIGHTLY CONFIRMED THE DISALLOWANCE @ 10% OF THE AFORESAID TELEPHONE, VEHICLE & MAINTEN ANCE AND TRAVELLING EXPENSES BY GIVING SET OFF OF RS.30,000/- SUO MOTO DISALLOWED BY THE ASSESSEE. SO, FINDING NO ILLEGALITY OR PERVERSITY IN THE IMPUGNED ORDER, PRESENT APPEAL FILED BY THE ASSESSEE IS HEREBY DISM ISSED. ORDER PRONOUNCED IN OPEN COURT ON THIS 17 TH DAY OF SEPTEMBER, 2018. SD/- SD/- (G.D. AGRAWAL) (KULDIP SINGH) PRESIDENT JUDICIAL MEMBER DATED THE 17 TH DAY OF SEPTEMBER, 2018 TS COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-17, NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.