J.S. FOURWHEEL MOTORS (P) LTD., ALWAR V. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1, ALWAR

ITA 696/JPR/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 5935 (ITAT-JAIPUR)
• Duration Of Justice: 4 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-10-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 13-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAI SINGH
• Keywords: Corroborative evidences; Bogus
• Section: 43

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENC H B JAIPUR JH FOT; IKY JKO] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRA M SINGH YADAV, AM VK;DJ VIHY LA- @ ITA NO. 696/JP/2019 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR :2015-16 M/S J.S. FOURWHEEL MOTORS (P) LTD., DELHI ROAD, ALWAR (RAJ.) CUKE VS. THE ACIT, CIRCLE-01, ALWAR LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AAACJ4839K VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : SHRI P. C. PARWAL (CA) JKTLO DH VKSJ LS @ REVENUE BY : SHRI JAI SINGH (JCIT) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 02/09/2019 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT: 01/10/2019 VKNS'K@ ORDER PER: VIKRAM SINGH YADAV, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF LD. CIT(A)-22, ALWAR DATED 19.03.2019 WHEREIN THE ASSESSEE HAS TAK EN THE FOLLOWING GROUNDS OF APPEAL:- 1.0 THAT THE LD. ASSESSING OFFICER HAS ERRED IN LA W AS WELL AS ON THE FACTS AND CIRCUMSTANCES OF THE CASE IN MAKING AN AD DITION OF RS. 8,54,320/- JUST ON ESTIMATED BASIS AND OUT OF H IS OWN PRESUMPTION AND SURMISES, AND LD. CIT(A) HAS ERRED IN SUSTAININ G A SUM OF RS. 2,00,000/- AGAIN ON ESTIMATED BASIS OUT OF THE SAME. 2.0 THAT THE LD. ASSESSING OFFICER HAS ERRED IN LAW AS WELL AS ON THE FACTS AND CIRCUMSTANCES OF THE CASE IN MAKING AN AD DITION OF RS. 2,62,800/- ON ACCOUNT OF ELECTRICITY EXPENSES AND T HE LD. CIT(A), ALWAR HAS ERRED IN SUSTAINING A SUM OF RS. 1,19,896/- THE SAME BY VIRTUE OF 154 ORDER DT. 30.04.2019. ITA NO. 696/JP/2019 M/S J.S. FOURWHEEL MOTORS (P) LTD., ALWAR VS. ACIT , ALWAR 2 2. REGARDING GROUND NO.1, BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AS SESSING OFFICER ON VERIFICATION OF THE TRADING AND PROFIT & LOSS ACCOU NT NOTICED THAT THE ASSESSEE COMPANY HAS CLAIMED FOLLOWING EXPENSES: 1. REPAIR & MAINTENANCE : RS.62,04,409/- 2. FOOD AND BEVERAGE : RS.17,87,091/- 3. ANNUAL DAY PROGRAMME : RS. 5,51706/- 3. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE WAS ASKED TO FURNISH SUPPORTING EVIDENCES WITH REGARD T O THE ABOVE EXPENSES CLAIMED. IN RESPONSE THERETO, A.R. OF THE ASSESSEE PRODUCED BILLS AND VOUCHERS WITH REGARD TO THE ABOVE. ON VERIFICATION, IT WAS NOTICED BY THE ASSESSING OFFICER THAT THE ABOVE EXPENSES WERE NOT FOUND FULLY SUPPORTED BY VOUCHERS. SOME OF THE EXPENSES HAVE BEEN CLAIMED ON SELF MADE VOUCHERS WITHOUT ANY SUPPORTING BILLS/RECEIPTS. IN THE ABSENCE OF PROPER VOUCHERS, THE EXPENSES ARE NOT SUBJECT TO COMPLETE' VERIFICATION AND AS SUCH CANNOT BE ALLOWED IN TOTO. PERSONAL USE OF THE ABOVE FACILITIES BY THE STAFF CANNOT BE DENIED. KEEPING IN VIEW OF THE FACT S AND CIRCUMSTANCES OF THE CASE AND DISCUSSION WITH THE A/R OF THE ASSESSE E COMPANY, THE ASSESSING OFFICER DISALLOWED AN AMOUNT OF RS.8,54,3 20/- BEING 10% OF THE ABOVE EXPENSES CLAIMED AND THE SAME WAS ADDED TO TH E INCOME OF THE ASSESSEE COMPANY. 4. ON APPEAL, THE LD CIT(A) HELD THAT ASSESSEE HAS FAILED TO PROVIDE SUPPORTING DOCUMENTS TO PROVE THAT SUCH EXPENDITURE ARE INCURRED WHOLLY AND EXCLUSIVELY FOR THE PURPOSE OF BUSINESS OR PROFESSI ON AND SOME OF THE EXPENSES HAVE BEEN INCURRED IN CASH ALSO. ACCORDINGLY, HE PA RTLY CONFIRMED DISALLOWANCE OF RS 2 LACS AND AGAINST THE SAID FINDINGS, THE ASS ESSEE IS IN APPEAL BEFORE US. ITA NO. 696/JP/2019 M/S J.S. FOURWHEEL MOTORS (P) LTD., ALWAR VS. ACIT , ALWAR 3 5. DURING THE COURSE OF HEARING, THE LD AR SUBMITTE D THAT DURING THE YEAR ASSESSEE HAS CLAIMED REPAIR & MAINTENANCE EXPENSES OF RS.62,04,409/-. OUT OF THIS EXPENDITURE, RS.54,23,445/- HAS BEEN INCURRED THROUGH CHEQUE. EXPENDITURE INCURRED IN CASH IS ONLY RS.7,80,963/-. ALL EXPENSES ARE FOR THE BUSINESS PURPOSE. THE EXPENSES ARE SUPPORTED BY PRO PER VOUCHERS/ BILLS. THOUGH THE EXPENSES HAS INCREASED FROM RS.48,93,993 /- TO RS.62,04,409/- BUT AT THE SAME TIME THE TURNOVER HAS ALSO INCREASED FR OM RS.271.17 CRORE TO RS.284.62 CRORE. NEITHER IN THE PAST NOR IN THE SUB SEQUENT YEARS, ANY DISALLOWANCE WAS MADE OUT OF THESE EXPENSES. HENCE, NO DISALLOWANCE OUT OF REPAIR & MAINTENANCE EXPENSES IS CALLED FOR. 6. REGARDING FOOD & BEVERAGE EXPENSES OF RS.17,87,0 91/-, IT WAS SUBMITTED BY THE LD AR THAT THE EXPENDITURE CLAIMED UNDER THIS HEAD HAS REDUCED FROM RS.18,40,723/- TO RS.17,87,091/- IN TH E YEAR UNDER CONSIDERATION. THE EXPENSES ARE REASONABLE CONSIDERING THE VOLUME OF BUSINESS OF THE ASSESSEE. THE EXPENDITURE INCURRED BY THE ASSESSEE COMPANY IS NECESSARILY AND EXCLUSIVELY FOR THE PURPOSE OF BUSINESS AND QUALIFY FOR DEDUCTION U/S 37(1). THE HONBLE RAJASTHAN HIGH COURT IN CASE OF CIT VS. PRE MIER VEGETABLE PRODUCTS LTD. (2014) 97 DTR 230 HAS HELD THAT EXPENDITURE CL AIMED BY THE ASSESSEE ON TEA, COFFEE, COLD DRINKS, PAN, CIGARETTE, BISCUIT, CROCKERY ETC. ARE NOT IN THE NATURE OF ENTERTAINMENT AND LOOKING TO THE TURNOVER OF THE ASSESSEE, THE EXPENDITURE IS ROUTINE EXPENDITURE AND CUSTOMARY IN NATURE. NEITHER IN THE PAST NOR IN THE SUBSEQUENT YEARS, ANY DISALLOWANCE WAS M ADE OUT OF THESE EXPENSES. EXPENDITURE INCURRED ARE FOR BUSINESS CON SIDERATION AND THEREFORE DISALLOWANCE OUT OF SUCH EXPENSES IS NOT JUSTIFIED. 7. REGARDING ANNUAL DAY PROGRAMME EXPENSES OF RS.5, 51,706/-, IT WAS SUBMITTED THAT THE EXPENDITURE IS INCURRED TO MAINT AIN THE WORK CULTURE OF THE COMPANY AND TO MOTIVATE THE STAFF TO DO BETTER IN T HEIR RESPECTIVE AREA OF WORK. ITA NO. 696/JP/2019 M/S J.S. FOURWHEEL MOTORS (P) LTD., ALWAR VS. ACIT , ALWAR 4 THE ANNUAL DAY MEETINGS ARE HELD FOR THE PURPOSE OF KEEPING AN EYE ON THE OPERATIONAL ACTIVITIES OF COMPANY, IMPROVING THE WO RK CULTURE & TECHNIQUE AND CARVING OUT THE DIRECTION OF THE COMPANY IN WHICH I T NEED TO WORK TO ACHIEVE ITS GOALS. THE EXPENDITURE IS REASONABLE CONSIDERING TH E TURNOVER OF THE COMPANY. NEITHER IN THE PAST NOR IN THE SUBSEQUENT YEARS, AN Y DISALLOWANCE WAS MADE OUT OF THESE EXPENSES. HENCE, NO DISALLOWANCE IN CA LLED FOR. 8. IT WAS FURTHER SUBMITTED THAT THE LD. CIT(A) AFT ER CONSIDERING THE EXPLANATION OF ASSESSEE HAS REDUCED THE DISALLOWANC E OUT OF THESE EXPENSES TO RS.2 LACS WITHOUT POINTING OUT ANY SPECIFIC EXPENSE WHICH IS NOT SUPPORTED BY DOCUMENTS. THERE IS NO RESTRICTION IN THE LAW FOR I NCURRING EXPENDITURE IN CASH. HENCE, SUCH ADHOC DISALLOWANCE OF RS.2 LACS IS UNCA LLED FOR. RELIANCE IN THIS CONNECTION IS PLACED ON THE FOLLOWING CASES:- DCIT VS. ABC BEARING LTD. (2017) 157 DTR 242 (MUM.) (TRIB.) ACIT VS. GANPATI ENTERPRISES LTD. (2013) 142 ITD 11 8 (DELHI) (TRIB.) CIT VS. ORACLE INDIA (P) LTD. 199 TAXMAN 181 (DEL) (HC) ARTHUR & ANDERSON & CO. VS. ACIT (2010- TIOL-416-IT AT) SEASONS CATERING SERVICES (P) LTD. VS. DCIT 43 DTR 397 (DEL) (TRIB.) 9. THE LD DR IS HEARD WHO HAS RELIED ON THE ORDER OF THE LOWER AUTHORITIES AND IT WAS SUBMITTED THAT THE LD CIT(A) HAS ALREADY REDUCED THE DISALLOWANCE TO RS 2 LACS WHICH MAY KINDLY BE SUSTAINED. 10. WE HAVE HEARD THE RIVAL CONTENTIONS AND PURSUE D THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE DISALLOWANCE HAS BEEN MADE ON PURELY ADHOC BASIS WITHOUT POINTING OUT ANY SPECIFIC DEFECT IN THE VOU CHERS SO MAINTAINED BY THE ASSESSEE. FURTHER, THERE IS NO FINDING THAT THE EXP ENSES HAVE NOT BEEN INCURRED FOR THE PURPOSE OF BUSINESS OR EXPENSES ARE BOGUS I N NATURE. IN OUR VIEW, UNLESS AND UNTIL THE ASSESSING OFFICER BRINGS OUT S PECIFIC DEFECT OR GIVES A ITA NO. 696/JP/2019 M/S J.S. FOURWHEEL MOTORS (P) LTD., ALWAR VS. ACIT , ALWAR 5 SPECIFIC FINDING THAT EXPENSES CLAIMED ARE BOGUS IN NATURE OR NOT INCURRED FOR THE PURPOSES OF THE BUSINESS, THERE IS NO BASIS FOR MAKING SUCH ADHOC DISALLOWANCES FOR THE SAKE OF MAKING SUCH DISALLOWA NCES KNOWING FULL WELL THAT THE SAME CANNOT BE SUSTAINED DURING THE APPELLATE P ROCEEDINGS. WE ACCORDINGLY DELETE THE ADDITION SO MADE BY THE ASSE SSING OFFICER AND THE GROUND OF APPEAL SO TAKEN BY THE ASSESSEE IS ALLOWE D. 11. REGARDING GROUND NO. 2, BRIEFLY STATED, THE FAC TS OF THE CASE ARE THAT DURING THE ASSESSMENT PROCEEDING IT WAS NOTICED THA T ASSESSEE COMPANY HAS PAID SEVERAL INDIVIDUAL ELECTRICITY BILLS SUCH AS SMT. SUMITRA DEVI SANDHI W/O SH. JASWANT SINGH S-8 KALA KUA ALWAR, SM T. SUSMITA SARRAF W/O SH. SANJAY SARRAF, 501 WONDER HEIGHT ALWAR SMT. NALINI GOYAL W/O SH ARVIND GOYAL 703 WONDER HEIGHT ALWAR AND SH. NIKUNJ SANDHI JASWANT SINGH 701 702 WONDER HEIGHT ALWAR. A SHOW CAUSE WAS ISSUED TO THE ASSESSEE COMPANY AS TO WHY THE ABOVE AMOUNT IS NOT DISALLOWED AND ADDED TO THE INCOME OF THE ASSESSEE. IN RESPONSE, T HE A/R OF THE ASSESSEE FILED HIS REPLY WHICH IS REPRODUCED AS UNDER:- THE COMPANY HAS PAID THE ELECTRICITY CHARGES IN RE SPECT OF THE RESIDENCE OF THE DIRECTORS SH. NIKUNJ SANGHI AND ITS GENERA/ MANAGER SH. SANJAY SARRAF IN RESPECT OF THEIR RESIDENCE AT 5/8 KALA KU A, HOUSING BOARD, ALWAR FLAT NO. 701,702 AND 703 WONDER HEIGHTS AND 501 WON DER HEIGHTS, ALWAR. THIS PAYMENT IS IN PURSUANCE OF THE BOARD RE SOLUTION PASSED BY THE COMPANY IN THE MEETING OF THEIR BOARD OF DIRECT ORS AS PER THE COPY OF THE RESOLUTION ENCLOSED. THIS IS A CONTRACTUAL LIAB ILITY AND THE COMPANY IS UNDER OBLIGATION TO PAY THE SAID EXPENSES, THEREFOR E THE SAID EXPENSES IS AN ADMISSIBLE EXPENSES AND DESERVES TO BE ALLOWED. 12. THE REPLY FILED BY THE ASSESSEE WAS CONSIDERED BY THE AO BUT NOT FOUND TENABLE BECAUSE AS PER RESOLUTION, THE NAME OF HOUS E ALLOTTED FOR DIRECTOR OR ITA NO. 696/JP/2019 M/S J.S. FOURWHEEL MOTORS (P) LTD., ALWAR VS. ACIT , ALWAR 6 MANAGING DIRECTOR AND THE ELECTRICITY BILLS ARE IN DIFFERENT NAMES. THEREFORE IT IS CLEAR THAT THE COMPANY PAYS ELECTRICITY BILLS OF DI FFERENT PERSONS AND CLAIM EXPENSES. THE DETAILS OF RESOLUTION AND ELECTRICITY BILLS ARE AS UNDER:- S. NO. ADDRESS OF HOUSE/BUILD ING NAME ON THE ELECTRICITY BILLS AS THE RESOLUTION HOUSE ALLOTTED TO DATE OF RESOLUTION MATCHED OR NOT 1. 5/8, KALA KUA, ALWAR SMT. SUMITRA DEVI SANGHI W/O SH. JASWANT SINGH SH. NIKUNJ SANGHI 05.01.1989 NOT 2. 501, WONDER HEIGHT, ALWAR SMT. SUSMITA SARRAF W/O SANJAY SARRAF SH. SANJAY SARRAF 10.05.2011 MATCHED 3. 701 & 702 WONDER HEIGHT, ALWAR SHT. NIKUNJ SANDHI SH. JASWANT SINGH SH. NIKUNJ SANGHI 7.02.2014 MATCHED 4. 703 WONDER HEIGHT, ALWAR NALINI GOYAL ARVIND GOYAL, SH. NIKUNJ SANGHI 1 7.02.2014 NOT 13. FROM THE ABOVE CHART IT IS CLEAR THAT ASSESSEE S. NO. 1 & 4 ARE NOT MATCHED. THEREFORE COMPANY PAY ELECTRICITY BILLS OF DIFFERENT PERSONS. THE BILLS OF 5/8, KALA KUA, ALWAR PAID ON THE MONTH OF NOVEMBER 2014 IS RS. 30,055/- AND BILLS OF 703 WONDER HEIGHT, ALWAR PAID FOR THE MONTH OF MARCH 2015 IS RS. 13,745/-. THEREFORE ANNUAL BILLS COMES TO RS. 2,62,800/- [(30,055 + 13745)X 6] WHICH WAS DISALLOW ED AND ADDED TO THE INCOME OF THE ASSESSEE COMPANY. THE LD. CIT(A) AFTE R CONSIDERING THE ACTUAL ELECTRICITY BILLS OF THESE TWO RESIDENCES OF RS.1,19,896, CONFIRMED THE ITA NO. 696/JP/2019 M/S J.S. FOURWHEEL MOTORS (P) LTD., ALWAR VS. ACIT , ALWAR 7 DISALLOWANCE THOUGH RESTRICTED IT TO AT ACTUALS. A GAINST THE SAID FINDINGS, THE ASSESSEE IS IN APPEAL BEFORE US. 14. DURING THE COURSE OF HEARING, THE LD AR SUBMIT TED THAT THE AO OBSERVED THAT ASSESSEE COMPANY HAS PAID ELECTRICITY CHARGES IN RESPECT OF THE RESIDENCE OF SMT. SUMITRA DEVI SANGHI RESIDING AT 5/8, KALA K UA, ALWAR AND SMT. NALINI GOYAL RESIDING AT 703, WONDER HEIGHT, ALWAR. AS PER BOARD RESOLUTION, THE HOUSE IS ALLOTTED TO DIRECTOR OR MANAGING DIRECTOR BUT THE ELECTRICITY BILLS ARE IN DIFFERENT NAMES. THUS, IT IS CLEAR THAT THE COMPANY IS PAYING ELECTRICITY BILLS OF DIFFERENT PERSONS. HE THEREFORE DISALLOWED THE ELEC TRICITY CHARGES IN RESPECT OF THESE TWO HOUSES BY ESTIMATING IT AT RS.2,62,800/-. ON APPEAL, THE LD. CIT(A) AFTER CONSIDERING THE ACTUAL ELECTRICITY BILLS OF T HESE TWO RESIDENCE, RESTRICTED THE DISALLOWANCE TO RS.1,19,896/- IN THE ORDER PASS ED U/S 154 OF THE ACT. 15. IT WAS SUBMITTED BY THE LD AR THAT ELECTRICITY EXPENSES PAID IN RESPECT OF 5/8, KALA KUA, ALWAR IS GOVERNED BY THE BOARD RESOL UTION DT. 05.01.1989. SMT. SUMITRA DEVI SANGHI IS THE OWNER OF THE SAID HOUSE AND THE ASSESSEE HAS TAKEN THE HOUSE ON RENT FROM HER. THEREFORE, THE ELECTRIC ITY BILLS ARE IN THE NAME OF OWNER. THE SAID HOUSE IS USED AS A CITY OFFICE OF T HE ASSESSEE COMPANY. THUS, THE ELECTRICITY EXPENSES INCURRED ARE WHOLLY AND EX CLUSIVELY FOR THE PURPOSE OF BUSINESS AND HENCE, NO DISALLOWANCE IS CALLED FOR. 16. IT WAS SUBMITTED BY THE LD AR THAT THE ELECTRI CITY EXPENSES IN RESPECT OF FLAT NO.703, WONDER HEIGHT, ALWAR IS GOVERNED BY TH E BOARD RESOLUTION DT. 07.02.2014. THE FLAT NO.701, 702 & 703 OF WONDER HE IGHTS ARE ADJOINING FLATS AND HAVE BEEN CONVERTED INTO ONE COMPLETE HOUSE FOR EASE OF LIVING AND CONVENIENCE BY REMOVING THEIR COMMON PARTITION WALL S. FLAT NO.701 & 702 ARE OWNED BY SH. NIKUNJ SANGHI, DIRECTOR OF THE ASSESSE E COMPANY AND FLAT NO.703 IS OWNED BY SMT. NALINI GOYAL, SISTER OF SH. NIKUNJ SANGHI. SINCE FLAT NO. 703 IS IN OWNERSHIP OF SMT. NALINI GOYAL, ELECTRICITY BILL S ARE IN HER NAME. THE ITA NO. 696/JP/2019 M/S J.S. FOURWHEEL MOTORS (P) LTD., ALWAR VS. ACIT , ALWAR 8 ASSESSEE HAS PROVIDED THE ACCOMMODATION TO SH. NIKU NJ SANGHI FOR HIS RESIDENCE AND IT HAS RESOLVED TO BEAR THE ELECTRICI TY EXPENSES IN TERMS OF BOARD RESOLUTION DT. 07.02.2014. THE AO HAS ALLOWED THE E LECTRICITY EXPENSE OF FLAT NO. 701 & 702 BY FOLLOWING THE BOARD RESOLUTION DT. 07.02.2014 BUT HAS NOT ALLOWED THE ELECTRICITY EXPENSES IN RESPECT OF FLAT NO. 703 WHICH IS ALSO GOVERNED BY THE SAME BOARD RESOLUTION. ALL THE THRE E FLAT NUMBERS REFER TO ONE RESIDENTIAL HOUSE AND THUS, ALLOWING ELECTRICITY EX PENSES FOR ONE PART AND DISALLOWING FOR THE OTHER PART DOES NOT HOLD GOOD. HENCE, ONLY BECAUSE IN THE ELECTRICITY BILL THE NAME OF THE OWNER OF HOUSE IS MENTIONED, CANNOT BE A REASON FOR DISALLOWING THE ELECTRICITY EXPENSES. IN VIEW OF ABOVE, DISALLOWANCE CONFIRMED BY LD. CIT(A) BE DIRECTED TO BE DELETED. 17. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IN RESPECT OF PREMISES SITUATED AT 5/8, KA LA KUA, ALWAR, THE SAME HAS BEEN TAKEN ON RENT BY THE ASSESSEE COMPANY FROM THE OWNER OF THE SAID PREMISES SMT. SUMITRA DEVI SANGHI, A FACT NOT DISPU TED BY THE REVENUE. WHERE THE ELECTRICITY METER IS IN NAME OF THE OWNER AND THE ELECTRICITY BILLS COMES IN THE NAME OF THE OWNER, THE ASSESSEE REIMBU RSES AND THE PAYS THE SAME TO THE OWNER, WE SEE NO INFIRMITY IN THE SAID CLAIM OF THE ASSESSEE COMPANY AND THE SAME IS DIRECTED TO BE ALLOWED. 18. IN RESPECT OF PREMISES SITUATED AT FLAT NO.703, WONDER HEIGHT, ALWAR, THE SAME HAS BEEN TAKEN ON RENT BY THE ASSESSEE COMPANY FROM THE OWNER OF THE SAID PREMISES SMT. NALINI GOYAL AND HAS BEEN PROVID ED TO SHRI NIKUNJ SANGHI, THE DIRECTOR OF THE ASSESSEE COMPANY FOR HIS RESIDE NTIAL ACCOMMODATION. THE SAID FLAT NO. 703 IS ADJOINING THE OTHER TWO FLATS NAMELY FLAT NO. 701 & 702 AND ALL THESE THREE FLATS HAVE BEEN CLAIMED AS CONV ERTED INTO ONE RESIDENTIAL ACCOMMODATION FOR SHRI NIKUNJ SANGHI, THE DIRECTOR OF THE ASSESSEE COMPANY. APPARENTLY, FLAT NO. 701 & 702 ARE OWNED BY SHRI N IKUNJ SANGHI ONLY AND ONE ITA NO. 696/JP/2019 M/S J.S. FOURWHEEL MOTORS (P) LTD., ALWAR VS. ACIT , ALWAR 9 ELECTRICITY METER HAS BEEN INSTALLED FOR THE COMBIN ED RESIDENTIAL ACCOMMODATION CONSISTING OF THREE FLATS. THE ELECT RICITY METER APPARENTLY IS TAKEN IN THE NAME OF SHRI NIKUNJ SANGHI, BEING THE OWNER OF THE TWO FLATS AND NOT IN THE NAME OF THE OTHER OWNER NAMELY, NALINI G OYAL WHO IS THE OWNER OF THE OTHER FLAT. WE THEREFORE FIND THAT WHERE THE F ACTS RELATING TO THREE FLATS COMBINED AND CONVERTED INTO A SINGLE RESIDENTIAL AC COMMODATION FOR SHRI NIKUNJ SANGHI, THE DIRECTOR OF THE ASSESSEE COMPANY IS NOT BEING DISPUTED BY THE REVENUE, MERELY BECAUSE THE ELECTRICITY METER I S NOT IN NAME OF THE BOTH THE OWNERS AND IS IN NAME OF ONE OF THE OWNERS ONLY , THE SAME CANNOT BE A BASIS FOR DISALLOWANCE OF ELECTRICITY EXPENSES AND THE SAME IS DIRECTED TO BE ALLOWED. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D. ORDER PRONOUNCED IN THE OPEN COURT ON 01/10/2019. SD/- SD/- FOT; IKY JKO FOE FLAG ;KNO (VIJAY PAL RAO) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 01/10/2019 * GANESH KR. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- M/S J. S. FOURWHEEL MOTORS (P) LTD., ALWAR 2. IZR;FKHZ@ THE RESPONDENT- ACIT, CIRCLE-01, ALWAR 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR. 6. XKMZ QKBZY@ GUARD FILE {ITA NO. 696/JP/2019} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR