TaxTMI 
TaxTMI 
TaxTMI 
2016 (6) TMI 696
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....69,883 and a sum of Rs. 35,041. The Assessing Officer disallowed 20 per cent. of the aforesaid expenditure amounting to a sum of Rs. 1,06,385 on the ground that the assessee did not maintain call book for monitoring calls and that a part of such calls were for personal and non-business use. The Commissioner of Income-tax (Appeals) upheld that order. The learned Tribunal restricted the disallowance to a sum of Rs. 80,000. In other words, the learned Tribunal granted relief to the extent of a sum of Rs. 26,385. 3. The assessee had claimed to have spent a sum of Rs. 4,06,820 on account of expenses of the Mumbai office. Part of the expenses were supported by internal debit vouchers. The Assessing Officer, however, chose to disallow 20 per cent....
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....ifiable. There is no indication as to what step was taken by the Assessing Officer to have those expenses verified. If the Assessing Officer takes no pains to have the expenses verified he cannot resort to disallowing any portion of the expenditure on the ground that they are not verifiable. This was a sheer act of arbitrariness which the Assessing Officer could not have done. The learned Tribunal did not realise the aforesaid position. They chose to bring down the amount of disallowance without any reasons. The question always shall be whether the assessee has been able to prove the expenditure alleged to have been incurred by him for the purpose of his business. If the answer is in the affirmative, no part of the expenditure can be disall....
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....e sold at a loss. Therefore, the order disallowing loss of the sum of Rs. 1,60,562 was maintained. 8. Mrs. Banerjee, learned advocate, appearing for the appellant-assessee submitted that the learned Tribunal has accepted the contention of the assessee that the silver utensils were purchased for business purposes. Therefore, the loss arising out of the sale should have been allowed to be carried forward. 9. We have not been impressed by the submission for the simple reason that the silver utensils, according to the assessee, were purchased in the year 1966-67. The occasion to use the silver utensils for the purpose of business of the assessee arose at least 30 years after the silver utensils were allegedly purchased. Therefore, the silver ....