2013 (5) TMI 387

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....that the assessee debited a sum of Rs.8,30,796 as labour charges. During the course of assessment proceedings, the AO issued notice u/s 133(6) to various labour parties for verification. Out of the said parties, letters / notices issued to the following three parties were returned by the postal authorities. Sr. No Name of party Amount Remark by postal authorities 1. M/s.Amit Diamond Cutters Rs.97,930 Not claimed 2. Shri Dilip M.Khedekar Rs.8,899 Not known 3. M/s.Neha Manufacturing Co. Rs.2,99,733 Not known   Total Rs. 4,06,562   The Assessing Officer required the assessee to produce the above parties. The assessee furnished confirmation letters from these three parties....

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....curred on foreign traveling of Shri Anil Soni, son of one of the partners of the firm Shri Rameshwarprasad T.Soni :- Sr. No Date Amount 1. 09.06.2006 29,450 2. 12.06.2006 46,509 3. 19.10.2006 57,400 4. 09.11.2006 59,300 5. 12.01.2007 58,000 6. 17.01.2007 34,546   Total 2,85,205 4.1 On further perusal of the details, it was noticed that there were many entries in the name of Rs.A. Soni' and it was not verifiable whether the same pertained to Shri Amar Soni, a partner of the assessee firm or Shri Anil Soni, son of one of the partners of the firm as under :- Sr. No Date Amount 1. 08.09.2006 32,516 2. 13.11.2006 31,229 3. 02.12.2006 ....

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..... 7. Having heard the rival submissions and perused the relevant material on record, it is observed that the Assessing Officer has made ad hoc addition of Rs.30,000 out of total telephone expenses of Rs.1.84 lakh incurred by the assessee-firm. The learned AR submitted that these expenses pertained to telephones which were installed at the business premises. Such contention could not be controverted on behalf of the Revenue. In our considered opinion, there is no basis for making such disallowance more so when the telephones were installed at the business premises of the assessee. This addition is ordered to be deleted. 8. The second component of this ground is against the confirmation of addition of Rs.20,000 out of conveyance and pet....

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....t the car might have been used for personal purpose. The assessee's claim for depreciation on motor car amounting to Rs.1,26,995 was also disallowed at 1/5th on account of personal use. The learned CIT(A) sustained the disallowance. 11. Having heard the rival submissions and perused the relevant material on record, there is no dispute that the element of personal user of the car cannot be ruled out, but it is pertinent to note this fact has been duly accepted by the learned AR also. The assessee is in appeal against the sustenance of disallowance on account of interest on loan taken for the purchase of car while accepting other disallowances towards car repairs, maintenance and depreciation. In our considered opinion, there can be no dis....