SH. KULDEEP SINGH, AMRITSAR V. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-II, AMRITSAR

MA 6/ASR/2022

AI Insights

The case revolves around a Miscellaneous Application filed by Sh. Kuldeep Singh against an order of the ITAT dated 06.05.2022, which had not adjudicated a specific ground of appeal concerning adhoc disallowances made by the Assessing Officer (AO) for personal use expenses. The AO had made these disallowances in a routine manner, which were confirmed by the CIT(A) without proper examination. The Tribunal, upon reviewing the submissions and the records, found that the disallowances were made arbitrarily without any substantiation or discrepancies pointed out in the financial records of the assessee. Consequently, the Tribunal allowed the application and deleted the disallowances.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 114763 (ITAT-AMRITSAR)
• Duration Of Justice: 10 month(s) 28 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 28-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 22-05-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 30-06-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR BEFORE DR. M. L. MEENA, ACCOUNTANT MEMBER AND SH. ANIKESH BANERJEE, JUDICIAL MEMBER M. A. No. 6/Asr/2022 (Arising out of ITA No. 592/Asr/2017) Assessment Year: 2013-14 Sh. Kuldeep Singh, 271-A, East Mohan Nagar, Amritsar [PAN: ABSPS 9123R] (Appellant) V. Deputy Commissioner of Income Tax, Circle-III, Amritsar (Respondent) Appellant by : Sh. Nipun Khanna, CA Respondent by : Dr. Vedanshu Tripathi, Sr. DR Date of Hearing : 23.05.2023 Date of Pronouncement : 29.05.2023 ORDER Per Dr. M. L. Meena, AM: This Miscellaneous Application was filed by the assessee against order of the ITAT dated 06.05.2022 in ITA No. 592/Asr/2017. MA No. 6/Asr/2022 Kuldeep Singh v. Dy.CIT 2 2. At the outset, the ld. counsel for the assessee has submitted that ground no. 3 of the appeal is remain to be adjudicated by the Hon’ble Tribunal by observing that this ground was not arising out of the impugned order. The contention of the ld. AR is verified and found correct on record, and hence, MA of the appellant-assessee is admitted on merits and adjudicated in the following paras. The ld. AR further submitted that the issue has been confirmed by the ld. CIT(A) in mechanical manner in one sentence which reads as under: “The adhoc additions of Rs.1,61,000/- are considered reasonable as the personal use cannot be denied. The ground is dismissed.” 3. The AO in the assessment order has also made an adhoc disallowances in routine manner on account of personal use of telephone, travelling and conveyance expenses to the extent of Rs.1,61,000/-, without being substantiated by pointing out deficiency either in the books of account of the assessee in the expenditure claimed in the respective heads. In our view, the findings of the AO without pointing out any discrepancy in the books of account or bills or vouchers of the expenses claimed under the head of telephone expenses and conveyance expenses, the addition arbitrary confirmed by the ld. CIT(A) is not justified. Without MA No. 6/Asr/2022 Kuldeep Singh v. Dy.CIT 3 prejudice to the above, there is no provision under the law for adhoc disallowances out of the business expenses claimed by the appellant- assessee. 4. In the above view, we held that the order of the ld. CIT(A) on the issue of adhoc disallowances is bad in law and accordingly, the addition of Rs.1,61,000/- is deleted. 5. In the backdrop of the above discussion, the miscellaneous application filed by the assessee is allowed in the terms indicated as above. Order pronounced in the open court on 29.05.2023 Sd/- Sd/- (Anikesh Banerjee) (Dr. M. L. Meena) Judicial Member Accountant Member *GP/Sr./P.S.* Copy of the order forwarded to: (1)The Appellant (2) The Respondent (3) The CIT (4) The CIT (Appeals) (5) The DR, I.T.A.T. True Copy By Order