Tribunal grants partial relief on travelling expenses & upholds Long Term Capital Gain calculation.

The Tribunal partly allowed the assessee's appeal by reducing the disallowance of travelling expenses to Rs. 4,654, granting partial relief of Rs. 10,000. It upheld the calculation of Long Term Capital Gain on the sale of gold based on the indexed cost of acquisition determined by the ld. CIT(A). The decision emphasized fairness and justice in determining the disallowance amount and relied on a thorough analysis of the purchase and sale transactions of gold.

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Issues:
1. Disallowance of 10% of travelling expenses.
2. Increase in long term capital gain by reducing the value of purchase of gold.

Analysis:

Issue 1: Disallowance of 10% of travelling expenses
The Assessing Officer (AO) disallowed 20% of the travelling expenses claimed by the assessee for personal use and cash payments. The ld. CIT(A) reduced this disallowance to 10% after considering the submissions and ledger account provided by the assessee. The assessee contended that the disallowance was unjustified and requested further reduction. The Tribunal found it equitable to reduce the travelling expenses to Rs. 4,654, granting partial relief of Rs. 10,000 to the assessee. The ground was partly allowed, emphasizing the need for fairness and justice in determining the disallowance amount.

Issue 2: Increase in long term capital gain
The AO computed the Long Term Capital Gain on the sale of gold at a certain amount, making an addition to the figure computed by the assessee. The assessee argued that the indexed cost of acquisition should be higher, resulting in a lower Long Term Capital Gain. However, the ld. CIT(A) calculated the indexed cost of acquisition at a different amount, considering the purchase details and applying the FIFO method. The Tribunal agreed with the ld. CIT(A)'s findings, dismissing the assessee's appeal regarding the computation of Long Term Capital Gain. The decision was based on a thorough analysis of the purchase and sale transactions of gold by the assessee.

In conclusion, the appeal of the assessee was partly allowed, with the Tribunal addressing and deciding on the issues related to the disallowance of travelling expenses and the computation of long term capital gain on the sale of gold. The judgment provided detailed reasoning for each issue, ensuring a fair and just outcome based on the facts and circumstances presented during the proceedings.

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