SMT. GUMAN KHANDELWAL, Jaipur V. ACIT, Jaipur

ITA 581/JPR/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 54128 (ITAT-JAIPUR)
• Duration Of Justice: 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 10-06-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: K L MOOLCHANDAN I; R K KHUNTETA
• Keywords: Depreciation

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH A JAIPUR (BEFORE SHRI R.K.GUPTA AND SHRI N.L.KALRA) ITA NO.581/ JP/2011 ASSESSMENT YEAR 2006-07 PAN: ADRPK 6455 F SMT. GUMAN KHANDELWAL VS. THE ACIT A-2, RANA PRATAP NAGAR CENTRAL CIRCLE- 1 JHOTWARA, JAIPUR JAIPUR (APPELLANT ) (RESPONDENT) ASSESSEE BY : SHRI K.L. MOOLCHANDANI & SHRI R .K. KHUNTETA DEPARTMENT BY : SHRI SUNIL MATHUR DATE OF HEARING: 02-08-2011 DATE OF PRONOUNCEMENT: 26-08-2011 ORDER PER N.L. KALRA, AM:- THE ASSESSEE HAS FILED AN APPEAL AGAINST THE ORDER OF THE LD. CIT(A), CENTRAL JAIPUR DATED 15-04-2011 FOR THE ASSESSMENT YEAR 2006-07. 2.1 THE FIRST GROUND OF THE ASSESSEE IS THAT THE LD . CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF 20% FOR RS. 1,92,309/- O N ACCOUNT OF TAXI RUNNING EXPENSES OUT OF TOTAL ADDITION OF RS. 3,20,515/- MA DE BY THE AO. 2.2 THE SECOND GROUND OF THE ASSESSEE IS THAT THE L D. CIT(A) HAS ERRED IN RESTRICTING THE DISALLOWANCE OF DEPRECIATION TO THE EXTENT OF INCOME FROM TAXI 2 RUNNING EXPENSES AND BALANCE DEPRECIATION OF RS. 1, 92,309/- WAS HELD AS DISALLOWABLE. 2.3 WE HAVE HEARD BOTH THE PARTIES ON THIS ISSUE. D URING THE YEAR UNDER REFERENCE, THE ASSESSEE WAS HAVING TWO TAXIES FOR T HE ENTIRE YEAR, TWO OTHER TAXIES WERE AVAILABLE ONLY FOR 08 DAYS AND ONE MORE TAXI WAS AVAILABLE ONLY FOR 124 DAYS. THE RECEIPT AS WELL AS EXPENDITURE HA S BEEN ESTIMATED. LOOKING TO THE NUMBER OF TAXIES PLIED DURING THE YEAR AND T AXIES PLIED FOR PART OF THE YEAR, WE FEEL THAT IT WILL BE FAIR AND REASONABLE T O ESTIMATE THE INCOME FROM TAXIES AFTER ALLOWING DEPRECIATION AT RS..30,000/- AS AGAINST RETURNED LOSS OF RS. 3,84,372/- AFTER DEPRECIATION. 3.1 THE THIRD GROUND OF THE ASSESSEE IS THAT THE LD . CIT(A) HAS ERRED IN CONFIRMING THE ADDITION AT 20% OF FURNITURE MAKING EXPENSES AND WIP OF M/S. SUNIL FURNITURE FOR RS.29,278/- OUT OF TOTAL A DDITION OF RS. 49,550/- MADE BY THE AO. 3.2 WE HAVE HEARD BOTH THE PARTIES. IT IS TRUE THAT THAT THE EXPENSES ARE NOT FULLY VERIFIABLE. WE DO FEEL THAT THE DISALLOWANCE AS CONFIRMED BY THE EXCESSIVE. WE THEREFORE, FEEL THAT IT WILL BE FAIR AND REASONABLE TO RESTRICT THE DISALLOWANCE TO RS. 10,000/-. THUS GROUND NO. 4 IS PARTLY ALLOWED. 3 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED.. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 26-08 -2011. SD/- SD/- (R.K. GUPTA) (N.L. KALRA) JUDICIAL MEMBER ACCOUNTANT MEMBER JAIPUR DATED; 26/08/2011 *MISHRA COPY FORWARDED TO :- 1. SMT. GUMAN KHANDELWAL, JAIPUR 2. THE ACIT, CENTRAL CIRCLE- 1, JAIPUR 3. THE LD. CIT BY ORDER 4. THE LD. CIT(A) 5. THE LD.DR 6. THE GUARD FILE (ITA NO.581/JP /11) A.R, ITAT, JAIPUR 4 5