M/s Laj Exports, Ludhiana V. DCIT, Ludhiana

ITA 883/CHANDI/2012

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 95729 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 year(s) 3 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 20-05-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 24-08-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S K MITTAL
• Section: 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS.RANO JAIN, ACCOUNTANT MEMBER ITA NO. 883/CHD/2012 ASSESSMENT YEAR: 2006-07 M/S LAJ EXPORTS, VS THE DCIT, E-597, PHASE VII, CIRCLE I, FOCAL POINT, LUDHIANA. LUDHIANA. PAN: AAAFL3811A (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ASHOK GOYAL RESPONDENT BY : SHRI S.K.MITTAL DATE OF HEARING : 17.11.2015 DATE OF PRONOUNCEMENT : 27.11.2015 O R D E R PER BHAVNESH SAINI,JM THIS APPEAL BY ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT(APPEALS)-II LUDHIANA DATED 26.06.2 012 FOR ASSESSMENT YEAR 2006-07. THE ASSESSEE IN THE PRESENT APPEAL HAS CHALLENGED THE DISALLOWANCE OF R S. 1,33,790/- ON ACCOUNT OF 1/5 TH DISALLOWANCE OUT OF CAR AND TELEPHONE EXPENSES. 2. EARLIER THE APPEAL OF THE ASSESSEE WAS ALLOWED V IDE ORDER DATED 22.05.2013 CONSIDERING THE MATTER IN IS SUE TO BE OFF-SHOOT OF PROCEEDINGS UNDER SECTION 263 OF THE INCOME TAX ACT. THE REVENUE FILED MA NO. 1/2014 EXPLAINING THAT THERE WAS A MISTAKE APPARENT ON REC ORD. 2 ACCORDINGLY, THE ORDER DATED 22.05.2013 WAS RECALLE D AND APPEAL WAS FIXED FOR HEARING ON MERITS. 3. AFTER CONSIDERING RIVAL SUBMISSIONS, WE ARE OF T HE VIEW THAT ADDITION IS EXCESSIVE IN NATURE. THE ASS ESSEE PRODUCED COMPLETE BOOKS OF ACCOUNT BEFORE ASSESSING OFFICER AND HAS ALSO FILED RETURN OF INCOME AT RS. 49,20,430/-. THEREFORE, THERE ARE NO CHANCES OF INFLATING THE EXPENSES. HOWEVER, CONSIDERING THE FINDINGS OF THE ASSESSING OFFICER, WE ALSO CONFIRM HIS ORDER THAT PERSONAL USER OF THESE FACILITIES IS NOT RULED OUT. THEREFORE, CONSIDERING THE TOTALITY OF THE FA CTS AND CIRCUMSTANCES, THE ADDITION ON DISALLOWANCE OF THES E EXPENSES IS RESTRICTED TO RS. 50,000/- ONLY AS AGA INST RS. 1,33,790/-. THE APPEAL OF ASSESSEE IS THEREFOR E, PARTLY ALLOWED. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (RANO JAIN) (BHAVNESH SAIN I) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 27 TH NOV., 2015. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT, DR ASSISTANT REGISTRAR, ITAT/CHD