TaxTMI 
TaxTMI 
2012 (10) TMI 282
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....sallowances of below mentioned expenses, which were disallowed by ITO on adhoc basis. (1) Telephone exp. Disallowance of 20% Rs. 2885/- of Rs.14,424/- (2) Vehicle exp. Disallowance of 20% Rs.11,243/- of Rs.56,214/- (3) Dep. On vehicle. Disallowance of 20% Rs. 11,660/- of Rs. 58,300/- 2. On the facts and in circumstances of the case as well as on the subject, the Ld. CIT (A) has erred in confirming the addition of Rs.86,000/- on account of low household withdrawals determined by the A.O. on presumptive basis. (3) On the facts and in circumstances of the case as well as on the subject, the Ld. CIT (A) has erred in confirming disallowances of the shortage to the tune of Rs.1,20,991/-. 3. Assessee i....
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....ed to delete the disallowance. The Ld. D.R. on the other hand relied on the order of lower authorities. 5. We have heard the Ld. D.R. and perused the documents on record. The undisputed fact is that the expenses have been disallowed on adhoc basis without pinpointing any item which is of personal in nature. The assessee has not been able to show that he maintained log book recording movement of the vehicle for business purposes. The assessee failed to establish that the entire vehicle expenses and motor car expenses were incurred wholly and exclusively for business purpose. The possibility of the assessee for use of non business purposes cannot be ruled out. Having regard to the facts of the case, we are of the opinion that some disallow....
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....t was submitted that the A.O. has made the addition only on presumption basis. It was also submitted that the A.O. has wrongly considered the total number of 7 members in the family whereas the actual number of members are 5. The assessee also relied on the decision of Dineschandra Shah vs. ITO (ITA No. 2947/Ahd/2008). The assessee thus urged that the disallowance be deleted. The Ld. D.R. on the other hand relied on the order of lower authorities. 7. We have heard the Ld. D.R. and perused the documents on record. The undisputed fact is that the A.O. has made an estimation of household expenses. The estimation is not based on any evidence or material on record. The estimation of expenses of Rs.3,000/- per month per adult member and Rs.2,0....
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....o accepted the reasoning of the A.O. and upheld the order of A.O. Aggrieved by the order of CIT (A), the assessee is now in appeal before us. Before us in the written submissions, it was submitted that the shortage has been certified by the tax auditor in his report. It was further contended that the A.O. has not found any material defects in the books of accounts and his accounts have not been rejected. A chart of the past years was also furnished wherein the details of shortage was shown and it was submitted that the same was accepted by the Revenue. The assessee placed on record in the paper book, the copies of the daily stock register along with the copies of sample purchase bills along with the weighment slips to prove that the asse....