TaxTMI 
TaxTMI 
2013 (4) TMI 260
X X X X Extracts X X X X
X X X X Extracts X X X X
....lowance of Rs.3,83,853/- made by the learned Assistant Commissioner of Income Tax Circle (Saharanpur) (hereinafter called the AO for short) out of interest claimed by the appellant at Rs.15,51,412/- on unsecured loan@ 16%. 1.2 That without prejudice to the generality of Ground of Appeal No. 1.1 above, on the facts and in the circumstances of the cases, the disallowance is highly excessive. 2.1 That on the facts and in the circumstances of the case, CIT(A) erred in restricting the disallowance of Rs.68,110/- made by the AO out of Car expenses to Rs.30,000/- CIT(A) should have deleted the entire disallowance of Rs.68,110/- made by the Assessing Officer. 2.2 That on the facts and in the circumstances of the case and without prejudice to the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d by the assessee. The aggrieved assessee filed an appeal before the Commissioner of Income Tax(A), Muzaffarnagar which was partly allowed and now the assessee is before this Tribunal with the ground as mentioned hereinabove in this order. Ground No. 1.1 & 1.2 4. Apropos ground nos. 1.1 and 1.2, we have heard rival arguments of both the parties and carefully perused the record before us. Ld. counsel for the assessee submitted that the Assessing Officer has made an addition of Rs.3,83,853/- with a wrong observation that the interest has been paid to the family members of the assessee with an intention to increase their income and to reduce the profit in the hands of the assessee. He also submitted that the Assessing Officer wrongly observe....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... a computation chart of expenses and submitted that the interest on unsecured loan @16.5% have been allowed by the Assessing Officer during the preceding years i.e. 2007-08 and 2008-09 and on the principle of consistency during the year under consideration, the assessee is entitled to full allowance of interest paid on unsecured loan and disallowance in this regard cannot be held as justified. 6. Replying to the above submissions, ld. DR submitted that the assessee paid interest @16% per annum on unsecured loans received from his family members which is on the higher side as per generally applicable bank interest i.e. @12% per annum. The DR further submitted that the Commissioner of Income Tax(A) rightly observed that on the closing of the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....een considered by the authorities below. 8. In view of above discussion, we are of the considered opinion that the revenue authorities should reasonably follow the principle of consistency until and unless there is a valid reason to take a different view in the subsequent years. In the present case, we are unable to see any valid reason available to the authorities below to take a different view which we have already taken in the preceding assessment years. As we have observed that the assessee has not advanced any deposit or loan @8% per annum but the amount of deposit with M/s JK Paper Ltd. is a deposit which is necessary to secure distributorship and it is for business purpose only. We also observe that the assessee is charging 18% inte....
X X X X Extracts X X X X
X X X X Extracts X X X X
....11. On careful consideration of rival submissions, we observe that the appellant has not been able to establish that the car was exclusively used for the business purposes by producing the log book of the car before the authorities below. A part of car expense and depreciation had been disallowed during the preceding years and the same finding has not been challenged by the assessee on any count. In this situation, addition as partly confirmed by the Commissioner of Income Tax(A) cannot be held as highly excessive and unreasonable. Accordingly, ground no. 2.1 and 2.2 of the assessee is devoid of merits and we dismiss the same. Ground no. 3.1 & 3.2 12. The counsel for the assessee submitted that the Commissioner of Income Tax(A) was not jus....
X X X X Extracts X X X X
X X X X Extracts X X X X
....elow are deleted. Ground no. 4.1 & 4.2 14. The counsel for the assessee submitted that the Commissioner of Income Tax(A) confirmed a part disallowance of Rs.15000 out of freight and cartage and traveling expenses and Commissioner of Income Tax(A) should have deleted the entire disallowance made by the Assessing Officer. He further submitted that the disallowance made by the Commissioner of Income Tax(A) was highly excessive and without any reason. 15. On bare reading of the assessment order, we observe that the Assessing Officer made a disallowance of Rs.20,000 with an observation that the freight and cartage expenses were either partly vouched or supported by self made vouchers and in absence of proper verification of these expenses in ....