SHRI RAM RATAN JOSHI, Jaipur V. ACIT, Jaipur

ITA 763/JPR/2011

• Counselvise Citation: 76323114 RSA 2011
• Duration Of Justice: 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 30-08-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D K MEENA
• Assessee Lawyers: VIKAS RAJVANS HI
• Keywords: Depreciation

Judgement Text

1 ITA 763-11 IN THE INCOME TAX APPELLATE TRIBUNAL JAIPUR BENCH B JAIPUR BEFORE SHRI R.K. GUPTA AND SHRI N.L. KALRA ITA NO. 763/JP/2011 ASSTT. YEAR : 2007-08. SHRI RAM RATAN JOSHI, VS. THE ACIT, CIRCLE-4, S/O SHRI GANESHA RAM JOSHI, JAIPUR. PROP. M/S. RAMA PLASTICS, F-88 ROAD NO. 7, VKI AREA, JAIPUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI VIKAS RAJVANSHI RESPONDENT BY : SHRI D.K. MEENA DATE OF HEARING : 10.01.2012 DATE OF PRONOUNCEMENT : 30.01.2012. ORDER DATE OF ORDER : 30/01/2012. PER R.K. GUPTA, J.M. THIS IS AN APPEAL BY ASSESSEE AGAINST THE ORDER OF LD. CIT (A) RELATING TO ASSESSMENT YEAR 2007-08. 2. THE ASSESSEE IS OBJECTING IN SUSTAINING 20% OF S ALARY, CONVEYANCE, TELEPHONE, TRAVELING, INSURANCE ON VEHICLES, REPAIR TO VEHICLE , DEPRECIATION ON VEHICLE TOTALING DISALLOWANCE OF RS. 2,64,918/-. THE AO DISALLOWED 10% OF TOTAL COMMISSION PAID BY THE ASSESSEE UNDER SECTION 40A(2)(B) AND MADE DISALLOWA NCE @ 20% OF VARIOUS EXPENSES CLAIMED IN THE PROFIT & LOSS ACCOUNT, SALARY, CONVE YANCE, TRAVELING, TELEPHONE ETC. THE LD. CIT (A) DELETED THE DISALLOWANCE MADE @ 10% UND ER SECTION 40A(2)(B) IN RESPECT TO COMMISSION. HOWEVER, OTHER DISALLOWANCES MADE BY AO WERE CONFIRMED BY LD. CIT (A). 2 3. AFTER CONSIDERING THE WRITTEN SUBMISSIONS AND PE RUSING THE MATERIAL ON RECORD, WE FIND THAT ASSESSEE DESERVES TO SUCCEED IN PART. NO REASON HAS BEEN GIVEN BY AO WHILE DISALLOWING THE DISALLOWANCES ON ACCOUNT OF SALARY, INSURANCE ON VEHICLE, DEPRECIATION ON VEHICLE. THEREFORE, WE FEEL THAT THESE DISALLOWANC ES @ 20% OF TOTAL EXPENSES WERE NOT JUSTIFIED AND ACCORDINGLY WE DELETE THE ADDITION. WE FURTHER NOTED THAT TELEPHONE EXPENSES WERE CLAIMED AT RS. 86,865/-. AO HAS DISA LLOWED 20%. WE FEEL THAT IF DISALLOWANCE IS SUSTAINED AT RS. 3,000/- THAT WILL MEET THE ENDS OF JUSTICE. WE ORDER ACCORDINGLY. 4. REGARDING CONVEYANCE, TRAVELING EXPENSES, REPAIR TO VEHICLE, WE FEEL THAT IF AN ADDITION ON THESE ACCOUNTS IS SUSTAINED AT RS. 40,0 00/-, THEN IT WILL MEET THE ENDS OF JUSTICE. IN THIS WAY TOTAL ADDITION IS SUSTAINED A T RS. 43,000/- AGAINST TOTAL ADDITION SUSTAINED BY LD. CIT (A) AT RS. 2,64,918/-. WE ORD ER ACCORDINGLY. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED IN PART. 6. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 30. 01.2012. SD/- SD/- ( N.L. KALRA ) ( R.K. GUPTA ) ACCOUNTANT MEMBER JUDICIAL MEMBER JAIPUR, D/- COPY FORWARDED TO :- SHRI RAM RATAN JOSHI, JAIPUR. THE ACIT, CIRCLE-4, JAIPUR. THE CIT (A) THE CIT THE D/R GUARD FILE (ITA NO. 763/JP/2011) BY ORDER, AR ITAT JAIPUR. 3