Sh. Devendra Kumar Gupta & Sons (HUF), Yamunanagar v. DCIT, Yamunanagar

ITA 185/CHANDI/2011 | 2006-2007
Pronouncement Date: 30-03-2011 | Result: Partly Allowed

Appeal Details

RSA Number 18521514 RSA 2011
Assessee PAN AABHD6764K
Bench Chandigarh
Appeal Number ITA 185/CHANDI/2011
Duration Of Justice 1 month(s) 11 day(s)
Appellant Sh. Devendra Kumar Gupta & Sons (HUF), Yamunanagar
Respondent DCIT, Yamunanagar
Appeal Type Income Tax Appeal
Pronouncement Date 30-03-2011
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted A
Tribunal Order Date 30-03-2011
Assessment Year 2006-2007
Appeal Filed On 17-02-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES A CHANDIGARH BEFORE SHRI D.K.SRIVASTAVA ACCOUNTANT MEMBER AND MS SUSHMA CHOWLA JUDICIAL MEMBER ITA NO. 185/CHD/2011 ASSESSMENT YEAR: 2006-07 SHRI DEVENDRA KUMAR GUPTA & SONS VS THE DCIT PROPRIETOR M/S UPPER INDIA SMELTING CIRCLE & REFINERY WORKS YAMUNANAGAR YAMUNANAGAR PAN NO. AABHD6764K (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI TEJ MOHAN SINGH / SHRI D.K.GUP TA RESPONDENT BY: SHRI N.K.SAINI ORDER PER SUSHMA CHOWLA JM THE APPEAL BY THE ASSESSEE IS AGAINST THE ORDER OF CIT(A) KARNAL RELATING TO ASSESSMENT YEAR 2006-07 AGAINST THE ORD ER PASSED UNDER SECTION 143(3) OF THE I.T. ACT. 2. THE GROUND NO. 1 2 & 5 RAISED BY THE ASSESSEE A RE NOT PRESSED HENCE THE SAME ARE DISMISSED AS NOT PRESSED. 2 3. THE GROUND NO.3 RAISED BY THE ASSESSEE IS AGAINS T THE DISALLOWANCE OF 20% OF THE EXPENSES CLAIMED FOR TELEPHONE VEHIC LE RUNNING EXPENSES AND CAR DEPRECIATION AMOUNTING TO RS. 66 714/-. 4. THE LD. AR FOR THE ASSESSEE POINTED OUT THAT IN THE SUCCEEDING YEAR THE TRIBUNAL HAD RESTRICTED THE DISALLOWANCE TO 10% OF THE SAID EXPENDITURE. THE LD. DR PLACED RELIANCE ON THE ORD ER OF CIT(A). 5. WE FIND THAT THE TRIBUNAL IN ITA NO. 1225/CHD/20 10 IN THE CASE OF THE ASSESSEE RELATING TO ASSESSMENT YEAR 2007-08 VI DE ORDER DATED 8.12.2010 HAD RESTRICTED THE DISALLOWANCE TO THE 1/ 10 TH TO THE EXTENT OF 10% OF TELEPHONE VEHICLE RUNNING EXPENSES AND CAR DEPRECIATION ON ACCOUNT OF PERSONAL USE. THE GROUND NO. 3 RAISED B Y THE ASSESSEE IS THUS PARTLY ALLOWED. FOLLOWING THE ABOVE SAID RATIO WE RESTRICT THE DISALLOWANCE TO 1/10 TH OF TELEPHONE VEHICLE RUNNING EXPENSES AND CAR DEPRECIATION ON ACCOUNT OF PERSONAL USE. 6. THE ISSUE IN GROUND NO.4 RAISED BY THE ASSESSEE IS AGAINST DISALLOWANCE OUT OF FESTIVAL EXPENSES OFFICE MAINT ENANCE EXPENSES FREIGHT AND CARTAGE EXPENSES EQUIVALENT TO SUM OF RS. 60 000/-. 7. THE LD. AR POINTED OUT IS THAT THE DISALLOWANCE IS PURELY ADHOC AND NO SUCH DISALLOWANCE WAS MADE IN THE SUCCEEDING YEAR. WE FIND THE ASSESSING OFFICER TO HAVE DISALLOWED THE AFORESAID EXPENDITURE BECAUSE OF THE NATURE OF ACCOUNTS NOT BEING PROPERLY MAINTAINE D BY THE ASSESSEE. THE VOUCHERS PRODUCED BY THE ASSESSEE IN CONNECTION WIT H THE SAID EXPENDITURE WERE FOUND TO BE INCOMPLETE ACCORDINGLY THE AFORE SAID DISALLOWANCE OF RS. 60 000/-. IN THE ENTIRETY OF FACTS AND CIRCUMS TANCES OF THE CASE WE 3 RESTRICT THE SAID DISALLOWANCE TO RS. 20 000/- AND THE GROUND OF APPEAL NO.4 RAISED BY THE ASSESSEE IS THUS PARTY ALLOWED. 8. IN THE RESULT APPEAL OF THE ASSESSEE IS THUS PA RTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 30 TH DAY OF MARCH 2011. SD/- SD/- (D.K.SRIVASTAVA) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 30 TH MARCH 2011 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR