M/s Dawar footwear Industries, Agra V. Addl.CIT, Agra

ITA 616/AGR/2008

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 6772 (ITAT-AGRA)
• Duration Of Justice: 1 year(s) 8 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-06-2010
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 28-05-2010
• Assessment Year: 2005-2006
• Appeal Filed On: 03-10-2008
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R C SHARMA
• Assessee Lawyers: RAJENDER SHARMA
• Keywords: Depreciation

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA BEFORE SHRI R.K. GUPTA, JUDICIAL MEMBER AND SHRI P.K. BANSAL, ACCOUNTANT MEMBER ITA NO.616/AGR/2008 ASST. YEAR: 2005-06 M/S DAWAR FOOTWEAR INDUSTRIES VS. ADDL. CIT, RA NGE-1, AGRA DELHI ROAD, AGRA. SIKANDRA, AGRA (PAN : AAAFD 6003 E). (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI RAJENDER SHARMA, ADVOCATE RESPONDENT BY : SHRI R.C. SHARMA, JR. D.R. ORDER PER P.K. BANSAL, A.M.: THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A) DATED 04.08.2008 BY TAKING THE FOLLOWING EFFECTIVE GROUND S OF APPEAL :- (1) THE LEARNED CIT(APPEALS) HAS BEEN ARBITRARY AN D UNJUST WHILE SUSTAINING OF THE ADDITION MADE BY THE AO BY DISALLOWING OF TH E EXP. UNDER THE HEAD, CAR REPAIR AND MAINTENANCE AND DEPRECIATION ON THE CAR, THE ADDITION SUSTAINED BY MAKING OF THE DISALLOWANCES I.E. 1/10 TH OF THE ABOVE EXPENSES IS NOT CALLED FOR, ADDITION MADE BY THE AO I.E. 1/8 TH AND SUSTAINED BY THE CIT (APPEAL) I.E. 1/10 TH OF THE ABOVE EXPANSES ARE LIABLE TO BE DELETED. (2) THAT CIT (APPEALS) HAS ERRED ON FACTS AS WELL A S IN LAW WHILE SUSTAINING THE ADDITION IN RESPECT OF THE DISALLOWANCES MADE B Y THE A.O. OUT OF THE EXP. UNDER THE HEAD TELEPHONE. THE 1/6 TH OF THE TOTAL EXP. FROM THE ABOVE HEAD BY THE AO @ 1/10 TH AND SUSTAINED BY CIT (APPEALS) IS NOT CALLED FOR A DDITION SUSTAINED ON THIS SCORE IS LIABLE TO BE DELETED. 2 2. GROUND NO.1 RELATES TO THE SUSTENANCE OF THE DIS ALLOWANCE OUT OF CAR REPAIR EXPENSES AND DEPRECIATION ON CAR TO THE EXTENT OF 1/10 TH OF THE TOTAL EXPENSES INCURRED BY THE FIRM. THE A .O. DISALLOWED 1/8 TH OF THE CAR REPAIR EXPENSES AND DEPRECIATION ON CAR AMOUNTING TO RS.1,83,119/- . WHEN THE MATTER WENT BEFORE THE CIT(A), THE CIT(A) REDUCED THE DISALLOWANCE TO 1/10 TH BY HOLDING THAT THE ASSESSEE COULD NOT PROVE THAT THE ENTIRE EXPENSES SO INCURRED IS WHOLLY AND EXCLUSIVELY FOR THE PURPOSE OF BUSINESS AND THERE I S NO PERSONAL ELEMENT THEREIN. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULL Y CONSIDERED THE SAME. IN OUR OPINION, NO INTERFERENCE IS CALLED FOR IN THE ORDER OF THE C IT(A) AS THE CIT(A) WAS VERY REASONABLE IN REDUCING THE DISALLOWANCE TO 1/10 TH OF THE TOTAL EXPENDITURE SO INCURRED. THE ONUS IS ON THE ASSESSEE TO PROVE BY ADDUCING EVIDENCE THAT THE VEH ICLE HAS NOT BEEN USED FOR PERSONAL PURPOSES. IN THE ABSENCE OF EVIDENCE, THE PERSONAL USE OF THE VEHICLE CANNOT BE DENIED. WE ACCORDINGLY CONFIRM THE ORDER OF THE CIT(A). 4. GROUND NO.2 RELATES TO THE SUSTENANCE OF THE DIS ALLOWANCE TO THE EXTENT OF 1/10 TH OF THE TELEPHONE EXPENSES. THE A.O. DISALLOWED 1/6 TH OF THE TELEPHONE EXPENSES CLAIMED BY THE ASSESSEE. WHEN THE MATER WENT BEFORE THE CIT(A), T HE CIT(A) REDUCED THE DISALLOWANCE TO 1/10 TH OF THE TOTAL EXPENDITURE. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULL Y CONSIDERED THE SAME ALONGWITH THE ORDERS OF THE AUTHORITIES BELOW. IN OUR OPINION, P ERSONAL USE OF THE TELEPHONE SINCE HAS NOT BEEN DENIED BY THE ASSESSEE, THE CIT(A) WAS VERY REASONA BLE IN REDUCING THE DISALLOWANCE TO 1/10 TH OF THE TELEPHONE EXPENSES. WE ACCORDINGLY CONFIRM THE ORDER OF THE CIT(A). 3 ITA NO.616/AGR/2008 ASST. YEAR: 2005-06 6. IN THE RESULT, APPEAL FILED BY THE ASSESSEE STAN DS DISMISSED. (ORDER PRONOUNCED IN THE OPEN COURT ON 25.06.2010) . SD/- SD/- (R.K. GUPTA) (P.K. BANSAL) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE: AGRA DATE: 25 TH JUNE, 2010. PBN/* COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT BY ORDER 3. CIT CONCERNED 4. CIT (APPEALS) CONCERNED 5. DR, ITAT, AGRA BENCH, AGRA 6. GUARD FILE ASSIST ANT REGISTRAR INCOME-TAX APPELLATE TRIBUNAL, AGRA TRUE COPY