2020 (11) TMI 302

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....the expenses relating to (i) vehicle expenses of Rs. 1,26,104/-, (ii) depreciation claimed on cars of Rs. 1,71,294/-, (iii) Business Promotion Expenses of Rs. 3,48,731/-, and (iv) Disallowance of Telephone Expenses: Rs. 11,205/-. 2. Brief facts of the case are that the assessee is a law firm and for the AY 2014-15 had filed its return of income on 30.11.2014 declaring a total income of Rs. 4,77,36,060/-. The Ld. AO, by relying upon the auditor's report in Form 3CD, specifically to Para 17(b) of the auditors' report in Form 3CD where the auditors have held that they are unable to comment on the nature of expenses, since no log books regarding the use of telephone and vehicles are maintained, opined that the assessee has debited pe....

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....ssional fee is paid and reimbursement is made for the telephone expenses and vehicle expenses incurred by the said professionals; that the telephone expenses also include the data charges incurred for the internet usage; that from these things it is evident that the telephone and vehicle expenses are solely incurred for the business purpose and without such expenses the functioning of the assessee will get affected; and, therefore, there is no characteristic of personal nature in these expenses incurred by the assessee. 5. it is further submitted by the learned AR that the case of the assessee is squarely covered by the order dated 16.06.2017 of the Tribunal in assessee's own case for the A.Y. 2010-11 in ITA No. 2169/Del/2014, wherei....

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....e are of the view that the learned CIT (Appeals) was not justified in confirming the disallowance made by the Assessing Officer. 3.4 Accordingly we direct the Assessing Officer to delete the disallowances of Rs. 2,47,906/- on telephone and vehicle maintenance and Rs. 93,374/- on account of the business promotion expenses. " Further, vide decisions of Hon'ble Delhi High Court in the case of CIT Vs. Ms. Shehnaz Hussain 267 ITR 572 (Del.), Seasons Catering Services P. Ltd. Vs. DCIT [2010] 127 ITD 50 (Delhi), and lot many decisions of coordinate Benches of this Tribunal, it is a settled law that without pointing out any specific defect in the statutorily mandated audited books of the assessee, and with reference to any specific ....