Shri Sudha Nagory ,, Kanpur v. Dy. Commissioner of Income Tax-4 ,, Kanpur

ITA 104/LKW/2013 | 2009-2010
Pronouncement Date: 11-04-2014 | Result: Dismissed

Appeal Details

RSA Number 10423714 RSA 2013
Assessee PAN ABEPN1435D
Bench Lucknow
Appeal Number ITA 104/LKW/2013
Duration Of Justice 1 year(s) 1 month(s) 12 day(s)
Appellant Shri Sudha Nagory ,, Kanpur
Respondent Dy. Commissioner of Income Tax-4 ,, Kanpur
Appeal Type Income Tax Appeal
Pronouncement Date 11-04-2014
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 11-04-2014
Date Of Final Hearing 06-02-2014
Next Hearing Date 06-02-2014
Assessment Year 2009-2010
Appeal Filed On 28-02-2013
Judgment Text
1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV JUDICIAL MEMBER AND SHRI A.K. GARODIA ACCOUNTANT MEMBER ITA NO.104/LKW/2013 ASSESSMENT YEAR:2009 - 10 SMT. SUDHA NAGORY 7/197 MOTI SADAN SWAROOP NAGAR KANPUR. PAN:ABEPN1435D VS. DY.C.I.T. - 4 RANGE - IV KANPUR. (APPELLANT) (RESPONDENT) APPELLANT BY SHRI S. K. JAIN ADVOCATE SHRI SWARAN SINGH ADVOCATE RESPONDENT BY SHRI ALOK MITRA CIT D.R. DATE OF HEARING 06/02/2014 DATE OF PRONOUNCEMENT 1 1 /04/2014 O R D E R PER A. K. GARODIA A.M. THIS IS ASSESSEES APPEAL DIRECTED AGAINST THE ORDER PASSED BY LEARNED CIT(A) - I KANPUR DATED 31/10/2012 FOR ASSESSMENT YEAR 2009 - 10. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS: 1. THAT THE LD. CIT(A) - L KANPUR HAS ERRED IN LAW & ON FACTS IN SUSTAINING THE DISALLOWANCE OF RS. 1 00 000/ - BEING THE ALLEGED PERQUISITE ON ACCOUNT OF TRAVEL TO DELHI BY THE APPELLANT AS DIRECTOR OF M/S THE INDIA THERMIT CORPORATION LTD. IN TERMS OF PAR A 3 OF THE ASSESSMENT ORDER READ WITH PARA 5.2 OF THE ORDER OF LD. CIT(A) (UNDER APPEAL). 2. THAT THE LD. CIT(A) HAS ERRED IN LAW & ON FACTS IN CONFIRMING THE ADDITION OF RS.1 00 000 / - MADE BY THE LD. A.O. IN TERMS OF PARA 4 OF THE ASSESSMENT ORDER READ W ITH PARA 6.2 OF THE ORDER OF LD. CIT(A) (UNDER APPEAL). 2 3. THAT THE LD. CIT(A) HAS ALSO ERRED IN LAW & ON FACTS IN SUSTAINING THE DISALLOWANCE OF RS.18 000/ - OUT OF RS . 30 000/ - DISALLOWED BY THE LD. A.O. ON ACCOUNT OF TELEPHONE & MOBILE EXPENSES. 4. THAT THE ORDER OF LD. CIT(A) TO THE EXTENT STATED IN THE GROUNDS OF APPEAL NO. 1 2 & 3 HERE ABOVE IS INSUPPORTABLE IN LAW & ON FACTS & IS ALSO CONTRARY TO THE PRINCIPLES OF NATURAL JUSTICE & EQUITY. 5. THAT WITHOUT PREJUDICE TO THE ABOVE GROUNDS OF APPEAL TH E DISALLOWANCES SUSTAINED BY THE LD. CIT(A) ARE UNJUSTIFIED UNWARRANTED & IN ANY CASE MUCH TOO HIGH & EXCESSIVE. 6. THAT ANY OTHER RELIEF O R RELIEFS AS YOUR HONOUR(S) MAY DEEM FIT IN THE FACTS & CIRCUMSTANCES OF THE CASE BE GRANTED. 7. YOUR HUMBLE APPELLANT CRAVES LEAVE TO ADD WITHDRAW OR AMEND ANY GROUNDS OF APPEAL BEFORE HEARING. 3. LEARNED A.R. OF THE ASSESSEE REITERATED THE SAME CONTENTIONS WHICH WERE RAISED BEFORE THE LEARNED CIT(A). 4. LEARNED D.R. OF THE REVENUE SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. THE RELEVANT PARAS OF ORDER OF LEARNED CIT(A) BEING PARA NO. 5.2 6.2 AND 7.2 ARE REPRODUC ED BELOW FOR THE SAKE OF READY REFERENCE: 5.2 EVEN ASSUMING FOR A MOMENT THAT THE ASSESSEE HAD BEEN TRAVELLING AS A DIRECTO R IN THAT CASE THE TRAVELLING EXPENSES OUGHT TO HAVE BEEN BORNE BY THE COMPANY FOR WHICH SHE HAD UNDERTAKEN THESE TRAVEL(S). IN ANY CASE THE ASSESSEE HAS FAILED TO ADDUCE ANY EVIDENCE THAT SUCH EXPENSES WERE RELATED TO HER BUSINESS/PROFESSION. ACTION OF THE A .O. IS THEREFORE CONFIRMED. 3 6.2 AFTER DEDUCTING THE EXPENDITURE INCURRED ON FURNITURE JEWELLERY ETC . THE NET WITHDRAWAL FOR HOUSEHOLD EXPENDITURE COMES TO ONLY RS .80 340/ - . FURTHER THE ASSESSEE HAD TRAVELLED ABROAD - 2 TIMES CUMULATIVELY FOR MORE THAN 25 DAYS. HER TOTAL WITHDRAWAL ON ACCOUNT OF FOREIGN TRAVEL INCLUDING (AIR TICKETS) HAS BEEN SHOWN ONLY RS.2 06 469/ - IN TH IS VIEW FOR THE MATTER THE A .O. WAS RIGHT IN MAKING AN ADDITION OF RS .1 00 000/ - ON ACCOUNT OF LOW WITHDRAWALS. THE ADDITION IS THEREFORE CONFIRMED . 7.2 THE ADDITION ON ACCOUNT OF MEDICAL EXPENDITURE IS DELETED SINCE IT WAS ALREADY OFFERED TO TAX AS PE RQUISITES IN THE APPELLANTS HAND . HOWEVER THE ASSESSEE HAS BEEN USING PHONE/MOBILE AT COMPANY'S EXPENSES; THE NATURE OF USE IS SUCH THAT PERSONAL ELEMENT CANNOT BE RULED OUT THE ESTIMATE OF RS .30 000/ - BY THE A.O IS RESTRICTED TO RS . 18 000/ - (I.E. 1 500 / - PER MONTH) . 5.1 FROM THE ABOVE THREE PARAS WE FIND THAT A CLEAR FINDING IS GIVEN BY LEARNED CIT(A) THAT THE ASSESSEE HAS FAILED TO PRODUCE ANY EVIDENCE THAT THE EXPENSES DEBITED BY THE ASSESSEE COMPANY IN TRAVELLING EXPENSES IN RESPECT OF TRAVELLING OF THE DIRECTOR TO DELHI WERE RELATED TO ASSESSEES BUSINESS/PROFESSION. SIMILARLY REGARDING THE SECOND ADDITION OF RS.1 00 000/ - ON ACCOUNT OF LOW WITHDRAWALS FOR HOUSE HOLD EXPENSES WE FIND THAT THE CIT(A) HAS GIVEN A CLEAR FINDING THAT THE ASSESSEE H AS UNDERTAKEN FOREIGN TOUR ON TWO OCCASIONS FOR MORE THAN 25 DAYS AND HER TOTAL WITHDRAWAL ON ACCOUNT OF FOREIGN TRAVELLING INCLUDING AIR TICKET HAS BEEN SHOWN AT RS.2 06 469/ - . UNDER THESE FACTS HE CONFIRMED THESE TWO ADDITIONS. BEFORE US THE LEARNED A.R. OF THE ASSESSEE COULD NOT POINT OUT ANY SPECIFIC DEFECT IN THE ORDER OF LEARNED CIT(A) ON THESE TWO ISSUES. HENCE WE DECLINE TO INTERFERE IN THE ORDER OF LEARNED CIT(A). 6. REGARDING THE THIRD ISSUE DECIDED BY LEARNED CIT(A) AS PER PARA NO. 7.2 OF HIS ORDER WE FIND THAT HE HAS RESTRICTED THE DISALLOWANCE TO RS.18 000/ - AS AGAINST RS.30 000/ - MADE BY THE ASSESSING OFFICER. WE DO NOT 4 FIND ANY INFIRMITY IN THE ORDER OF CIT(A) BECAUSE PERSONAL USE OF PHONE / MOBILE CANNOT BE RULED OUT. HENCE THIS GROUND IS ALSO REJECTED. 7. IN THE RESULT THE APPEAL OF THE ASSESSEE STANDS DISMISSED. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/. SD/. (SU NIL KUMAR YADAV) ( A. K. GARODIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 1 1 /04/2014. *C.L.SINGH COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A) 5. D.R. I.T.A.T. LUCKNOW ASSTT. REGISTRAR