TaxTMI 
TaxTMI 
2014 (4) TMI 437
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....onfirming disallowance of only Rs.50,000/-." 2. Whether the Ld. CIT(A) is justified in deleting addition of Rs. 2,78,072/- out of the addition of Rs. 3,28.072/- made by the AO on A/c of disallowance under the head repair & maintenance, car depreciation, insurance & telephone expenses without giving basis for confirming disallowance of only Rs. 50,000/-". 3. Whether the Ld. CIT(A) is justified in deleting addition of Rs. 1,16,798/- out of the addition of Rs. 1,66,798/- made by the AO on A/c of ad hoc disallowance out of expenses on the ground of personal use without giving basis for confirming disallowance of only Rs. 50,000/-". 4. Whether the Ld. CIT(A) is justified in deleting the addition of Rs. 43,000/- made by the AO on a/c of disall....
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....led the details asked for and the assessment was framed after discussion. However, in the body of the assessment order, ld. Assessing Officer has mentioned that the assessee failed to produce any conclusive evidence regarding Diwali expenses and conveyance & travelling expenses. Besides personal element in relation to car depreciation, car running, maintenance and telephone expenses cannot be ruled out. Therefore, the relevant disallowances were made. 4. The Assessing Officer further found that the assessee has shown suspense account on the credit side which is explained by the assessee and the same was also added. The aggrieved assessee preferred first appeal and made various pleadings including the written submissions on the following li....
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....- Diwali, conveyance and traveling expense C(i) I have considered the order of the Assessing Officer and submissions of the assessee and I find considerable merit in the submission of the assessee that there is no proper justification for making such high ad hoc disallowances without any basis and accordingly the addition to the extent of Rs.50,000/- is confirmed on the ground of non-business expenditure and the balance addition of Rs.6,49,284/- (Rs.6,99,284/- (-) Rs.50,000/-) is deleted. Rs.3,28,072/- under the head repair & maintenance, car depreciation, insurance & telephone expenses C(ii) I have considered the order of the AO and the submissions of the assessee and I find considerable merit in the submission of the assessee that the....
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.... case, I am of the view that there is no proper justification for making such addition and accordingly, the addition made by the Assessing Officer is deleted. 8. Ld DR relied on the order of Assessing Officer and contended that the Commissioner of Income Tax(A) has not given a clear finding about the non-compliance mentioned by the Assessing Officer in his order. It is prayed that this order may be restored and Commissioner of Income Tax(A)'s order may be reversed inasmuch as the order does not give cogent reason for the relief. Ld. counsel for the assessee vehemently argued that from the Paper Book, it is clearly demonstrated that all the relevant details asked for by the Assessing Officer were duly produced before the assessment. It is u....
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.... ld. DR relied on the order of the Commissioner of Income Tax(A). 10. We have heard rival submissions and carefully perused the material placed on record. We observe that the basis for addition made by the Assessing Officer is backed by adverse inference drawn by the Assessing Officer of the fact that the assessee has not made proper and conclusive compliance of his queries. From the material available on record and written submissions filed before the Commissioner of Income Tax(A), which are not disputed, it clearly emerges that the adverse inference drawn by the Assessing Officer has no justification. The assessee had made full compliance and Assessing Officer has merely made sweeping observation that conclusive and complete evidence has....