TaxTMI 
TaxTMI 
2020 (12) TMI 552
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.... F. Staff Welfare Exp. Rs. 2500/- g. Vehicle Exp. Rs. 2741/- Total Rs. 52785/- Hence the above addition of Rs. 52785/- is liable to be deleted. 3. That the learned Authorities below have grossly erred in law and facts in making addition of Rs. 3,00,000/- on account of undisclosed investment in house furniture U/s 69. Hence the addition of Rs. 3,00,000/- is liable to be deleted. 4. That the learned Authorities below have grossly erred in law and facts in making addition of Rs. 99,000/- on account of undisclosed income u/s 69. Hence, the addition of Rs. 99,000/- is liable to be deleted. 5. The appellant prays your honors indulgence to add, amend or alter all or any of the grounds of the appeal on or before the date of hearing." 3. Briefly stated facts of the case are that the assessee is engaged in the business of trading of computers and hardware and also in providing computer education besides providing annual maintenance contract (AMC) for repair and maintenance of computers, through his proprietary concern namely M/s Gupta Computers. For the year under consideration, the assessee filed return of income on 31/10....
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....penses, vehicle related expenses (fuel, maintenance and depreciation), Diwali expenses, office maintenance expenses, staff welfare expenses etc, he made disallowances in percentage terms mainly on adhoc basis. On further appeal, the Ld. CIT(A) deleted the disallowance of depreciation on vehicles and balance disallowance was restricted to 50% of the disallowance made by the Assessing Officer. The disallowance made by the Assessing Officer and relief allowed by the Ld. CIT(A) in respect of the various expenses is summarised in table below:- S. No. Nature of expenses Total amount of expenditure Disallowance made by the A.O. Disallowance sustained by the CIT(A) 1 Telephone Exp. 81,903/- 16,381/- 8,190/- 2 Foreign tour Exp. 57,502/- 57,502/- 28,751/- 3 Diesel & Petrol Exp. 41,037/- 8,207/- 4,103/- 4 Diwali Expenses 11,017/- 3,000/- 1,500/- 5 Depreciation on vehicle 53,013/- 10,603/- Nil Office & Office maintenance Exp. 60,080/- 10,000/- 5,000/- 6 Staff welfare Expenses 36,031/- 5,000/- 2,500/- 7 Vehicle Expenses repair & maintenance Exp. 2,741/- 5,48....
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....e assessee did not maintained proper vouchers and said expenses were not complete and correct, therefore not verifiable. The contention of the assessee, however is that the office expenses mainly related to common building guard, office cleaning charges, stamp papers purchased during the year and general office expenses. Similarly in the office maintenance account the expenses are related to normal wear and tear in the office expenses and all those expenses are supported by bills and vouchers and no personal element was involved. 12. On perusal of the order of the lower authorities and submission of the assessee, we find that the Assessing Officer has categorically mentioned the fact of examination of books of accounts maintained by the assessee in the impugned assessment order and no adverse observations have been made in respect of the books of accounts. We notice that no specific instance of non-maintenance of the voucher or personal use has been pointed out by the lower authorities for sustainnence of the disallowance out of profit and loss account. It is well settled law that no disallowance of such expenses can be made on adhoc basis without pointing out any specific defec....
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....s on 31.03.2005 for personal state of t affairs. A copy of the said balance-sheet is placed on page 15 of the paper book. In the said balance-sheet the assessee has shown house furniture amounting to Rs. 3 lakh on asset aside. According to the Assessing Officer, this investment of house furniture was not appearing in the balance sheets of earlier years and therefore, he asked the asessee to explain source of investment in said furniture. The assessee, however submitted that during the year he has sold his old house at Raja park and the furniture lying in that house, which was purchased in earlier years, has been transferred to the new house, which was under construction and therefore no new investment has been made in the year under consideration. The assessee also attempted to explain the investment in furniture as has been made in earlier years by way of insurance certificates of household goods made in earlier years. The contention of the assessee was not accepted by the lower authorities. 17. Before us, the ld. Consul of the assessee referred to list of the items of furniture and fixture amounting to Rs. 3,00,050/- placed on the page 23 of the paper book. He also refer....
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....-2000, Rs. 5,69,817/- & Rs. 1,47,300/- have been made in financial year 2002- 03 & 2003-04. Before the Assessing Officer the assessee explained that additions made in the building were on account of renovation and registry charges. Now the claim of the is that certain furniture and fixture out of the house at Raja Park was transferred to his under construction house and which is appearing in the balance-sheet as on 31/03/2005. The list of the items under furniture and fixture of Rs. 3 lakh, is reproduced as under:- Item Model Serial No. Price 1. Fridge LG GR 362 M Rs. 20,000/- 2. A.C. Videocon 1.5 Ton 9428 Rs. 15,000/- 3. Music System Sony CBT A.290KCN Rs. 15,000/- 4. Microwave IFB20PG1S 2306/03/1440 Rs. 13,000/- 5.Kitchen Chimany Mobel 6099 Rs. 19,000/- 6. Juicer & Mixer Jaipan Rs. 5,500/- 7.24 Duct Fan & Pump GE Rs. 6,800/- 8.TV Optronika Optronika S677092 Rs. 15,000/- 9. TV Samsung Samsung 21K5 02823ZAW800433 Rs. 12,250/- 10. Vacume Cleaner Eureka Forbes Tornedo 3/62699 Rs. 4,000/- 11.Gyser 3 Nos Racold Pronto P30511084....
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....plained that Rs. 10,00,000/- was received on sale of his house located at Manorover, Jaipur and Rs. 99,000/- was against sale of furniture and other electronic items installed in said house. The assessee submitted that the remaining Rs. 99,000/- are in respect of old furniture electrical and electronic appliances etc. brought by his father from Shri Ganganager in the year 2003. The Assessing Officer was not satisfied according to him the fact of sale of furniture of Rs. 99,000/- with the explanation of the assessee is not supported by the sale deeds. Thus he treated the receipt of Rs. 99,000/- as income from undisclosed sources. The ld. CIT(A) also did not allow relief to the assessee on this account. The finding of ld. CIT(A) is reproduced as under:- "4.3 I have perused the facts of the case, the assessment order and the submissions of the appellant. On perusal of overall facts, it is seen that there is no dispute as to the fact that the assessee received Rs. 99,000/- on account of sale of furniture. Authorized Representative argued that this is sale proceeds of old furniture of father and represents sale of personal asset, therefore not taxable. I find that even if the c....