2020 (10) TMI 83

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....lidated order for the sake of convenience and brevity. First we take up appeal for AY 2013-14 which contest the order of Ld. Commissioner of Income-Tax (Appeals)-53, Mumbai, [in short referred to as 'CIT(A)'], on following grounds: - 1. Ld. CIT(A) erred in confirming disallowing of Rs. 10 Lakhs, out of car expenses of Rs. 8,11,593/- and depreciation of Rs. 20,64,927/- based on survey proceedings conducted on 31/08/2015 merely on the plea that appellant is not in a position to substantiate the claim of vehicle used exclusively for purpose of business as no log book is maintained without properly appreciating the facts of the case and law applicable. 2. Ld. AO erred in upholding a disallowance of Rs. 1,60,000/- out of certai....

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....in the business of manufacturing of plastic items in the name and style of M/s. Creative Technoplast. 2.2 During survey operations, it transpired that the assessee had 7 Motor Car in Daman Unit of M/s Creative Technoplast. These cars were purchased on different dates. Against the same, the assessee claimed depreciation of Rs. 20.64 Lacs and vehicle expenses of Rs. 8.11 Lacs during the year. In the sworn statement during survey operations, the assessee admitted that the cars were not used for any specific concern / unit and used for business interests of the group. Further the cars were used by the members of the family and for activities of other group concerns. In the said background, since no component of personal expenditure was disal....

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....ific defect was pointed out by Ld. AO in the evidences produced by the assessee. Upon careful consideration of factual matrix as enumerated in preceding paragraphs, we find that keeping in view the facts as emerging during survey proceedings including sworn statements made by assessee therein, personal element in usage of Motor Cars could not be ruled out. No disallowance was offered by the assessee in respect of the same while filing the return of income. Similarly, the labor-welfare expenses and conveyance expenses were claimed on the basis of self-made vouchers and the assessee could not produce satisfactory evidences in support of the same. Therefore, some adhoc disallowance is justified on the facts and circumstances. Keeping in view t....