Virender Kumar Gupta, New Delhi v. ITO, New Delhi

ITA 5891/DEL/2010 | 2006-2007
Pronouncement Date: 11-03-2011 | Result: Partly Allowed

Appeal Details

RSA Number 589120114 RSA 2010
Assessee PAN AAEPG7742H
Bench Delhi
Appeal Number ITA 5891/DEL/2010
Duration Of Justice 2 month(s) 18 day(s)
Appellant Virender Kumar Gupta, New Delhi
Respondent ITO, New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 11-03-2011
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted H
Tribunal Order Date 11-03-2011
Assessment Year 2006-2007
Appeal Filed On 23-12-2010
Judgment Text
ITA NO. 5891/DEL/2010 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH H NEW DELHI BEFORE SHRI RAJPAL YADAV JUDICIAL MEMBER AND SHRI SHAMIM YAHYA ACCOUNTANT MEMBER I.T.A. NO. 5891/DEL/2010 A.Y. : 2006-07 VIRENDER KUMAR GUPTA 3621 CHAWRI BAZAR DELHI 110 006 (PAN/GIR NO. : AAEPG7742H) VS. ITO WARD 29(2) NEW DELHI (APPELLANT ) (APPELLANT ) (APPELLANT ) (APPELLANT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) ASSEESSEE BY : SH. VIRENDER KUMAR GUPTA CA DEPARTMENT BY : SH. AMRENDRA KUMAR SR. D.R. ORDER ORDER ORDER ORDER PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM PER SHAMIM YAHYA: AM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) DATED 2.11.2 010 PERTAINING TO ASSESSMENT YEAR 2006-07. 2. THE ISSUE RAISED IS THAT LD. COMMISSIONER OF INCOM E TAX (APPEALS) ERRED IN DELETING THE ADDITION ON ACCOUNT OF HOUSEHOLD EXPENSES ADVERTISEMENTS SHORT RECEIPTS AND MISC. EXPENSES. 3. DURING THE YEAR ASSESSEE DERIVED INCOME FROM DEALI NG IN MILL PRODUCTS. IT HAS DECLARED GROSS PROFIT OF ` 11 58 385/- ON THE SALE OF ` 1 08 59 402/-. ASSESSING OFFICER NOTED THAT ASSES SEE HAD SHOWN WITHDRAWAL FOR HOUSEHOLD EXPENSES AMOUNTING TO ` 69 650/-. ASSESSING ITA NO. 5891/DEL/2010 2 OFFICER NOTED THAT ASSESSEE HAS NOT SHOWN DETAIL I N RESPECT OF OTHER FAMILY MEMBERS WHO HAD CONTRIBUTED TOWARDS HOUSEHOLD EXPENDITURE. THEREFORE ASSESSING OFFICER HELD THAT KEEPING IN VIEW THE LIFE STYLES OF THE PEOPLE LIVING IN A METROPOLITAN CITY THE AMOUNT WITHDRAWN FOR THE HOUSEHOLD EXPENSES IS FEWER HENCE A SUM OF ` 3 0 350/- IS ADDED TO THE INCOME OF THE ASSESSEE. FURTHER ADDITION M ADE BY THE ASSESSING OFFICER WAS AS UNDER:- I) ADVT. EXPENSES WAS CLAIMED AT ` 18440/-. SINCE THE BILLS AND VOUCHERS FOR ` 3500/- WERE NOT PRODUCED BY THE ASSESSEE THE SAME IS DISALLOWED. II) CAR RUNNING AND DEPRECIATION EXPENSES WAS DISAL LOWED @ 10% AMOUNTING TO ` 9928/-. III) IN ABSENCE OF CERTAIN BILLS AND VOUCHERS OUT O F THE TOTAL MISC. EXPENSES ` 58707/-. ASSESSING OFFICER DISALL OWED ` 5500/- AS SOME BILLS AND VOUCHERS ARE MISSING. IV) SHORT RECEIPTS DEBITED TO PROFIT AND LOSS ACCOU NT NOT ALLOWED THE REASON BEING NO DETAILS HAVE BEEN FURN ISHED BY THE ASSESSEE OF ` 7825/-. 4. UPON ASSESSEES APPEAL LD. COMMISSIONER OF INCOME TAX (APPEALS) CONFIRMED THE ADDITION. 5. AGAINST THE ABOVE ORDER THE ASSESSEE IS IN APPE AL BEFORE US. 6. WE HAVE HEARD BOTH THE COUNSELS AND PERUSED THE RECORDS. ITA NO. 5891/DEL/2010 3 7. AS REGARDS THE ADDITION ON ACCOUNT OF HOUSE HOLD EXPENSES ARE CONCERNED. WE FIND THAT THE SAME IS MADE ON SURMISES A ND CONJECTURES. IT IS NOT BACKED BY ANY BASIS. IT I S A SETTLED LAW THAT ADDITION BASED ON SURMISES AND CONJECTURES CANNOT BE SUSTAINED. ACCORDINGLY WE DELETE THE ADDITION MADE ON ACCOUNT HOUSE HOLD EXPENSES AMOUNTING TO ` 30350/-. 7.1 AS REGARDS THE ADVT. EXPENSES DISALLOWANCE OF ` 3500/- WE FIND THAT THE SAME IS PASSED ON THE FACTS THAT SOME VOUCHE RS WERE MISSING. HENCE WE CONFIRM THE SAME. 7.2 AS REGARDS THE CAR RUNNING AND DEPRECIATION DIS ALLOWANCE AMOUNTING TO ` 9928/- LD. COUNSEL OF THE ASSESSEE S UBMITTED THAT HE SHALL NOT BE PRESSING THE SAME. HENCE THE SAME IS DISMISSED AS NOT PRESSED. 7.3 AS REGARDS THE DISALLOWANCE OF ` 5500/- OUT OF MISC. EXPENSES WE FIND THAT THE SAME HAS BEEN DONE AS SOME BILLS WERE FOUND MISSING. WE DO NOT FIND ANY INFIRMITY IN THIS REGARD. ACC ORDINGLY WE UPHOLD THE SAME. 7.4 AS REGARDS THE SHORT RECEIPT DEBITED TO PROFIT AND LOSS ACCOUNT THE ASSESSEE COUNSEL HAS PRODUCED BEFORE US THE EXT RACT OF LEDGER ACCOUNT IN WHICH SHORT RECEIPTS INVOLVING VERY SMA LL DENOMINATION WERE MENTIONED IN LEDGER ACCOUNT IN RUNNING INTO 3 P AGES. IN OUR ITA NO. 5891/DEL/2010 4 CONSIDERED OPINION IT CANNOT BE SAID THAT THE DETA ILS HAS NOT BEEN FURNISHED BY THE ASSESSEE IN THIS REGARD. HENCE WE DELETE THE ADDITION IN THIS REGARD. 8. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 11/3/2011. SD/- SD/- [RAJPAL YADAV] [RAJPAL YADAV] [RAJPAL YADAV] [RAJPAL YADAV] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] [SHAMIM YAHYA] JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER DATE 11/3/2011 SRB COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: - -- - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR ITAT TRUE COPY BY ORDER DEPUTY REGISTRAR ITAT DELHI BENCHES