TaxTMI 
TaxTMI 
2020 (12) TMI 552
X X X X Extracts X X X X
X X X X Extracts X X X X
....s. 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 31/10/2005 declaring total income of Rs. 1,27,671/-. The return of income filed by the assessee was selected for scrutiny assessment a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....es 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/- 5,482/- 2,741/- 7. Before us the ld. Consul of the assessee submitted that the expenses have been incurred wholly and exclusively for the purpose of the business and vouchers of the expenses are maintained properly. He submitt....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ning 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 defect or instance of non-maintenance of vouchers. The disallowance also cannot be made merely on the ground that payment have been made in cash unless the parties to him payment is made are not genuine. No doubt regarding geninuenity of the partie....
X X X X Extracts X X X X
X X X X Extracts X X X X
....g 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 referred to copy of balance-sheet of proprietary concern as on 31/03/2004 and 31/03/2005, which are placed on page 1 and page 7 of the paper book respectively. He Submitted that in the fixed asst schedule of the balance-sheet as on 31/03/2004, the house at 'Raja ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n 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 P305110845,46,47 Rs. 4,200/- 12.Handy Vacume Cleaner SR 811171 Rs. 2,000/- 13. Ceiling Fan 7 Nos Bajaj Euro As per warranty card Rs. 9,800/- 14. Tube Lights Bajaj Slim Line power saver 14 Nos Rs. 9,200/- 15.Sofa Set (8 seater) Rs. 48,000/- 16. Dining Table (with 6 seats) ....