TaxTMI 
TaxTMI 
2025 (2) TMI 1891
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.... the Income-tax Act, 1961 (for short 'the Act'). The case was selected for scrutiny under CASS and notices u/s 143(2) and 142(1) were issued and served on the assessee. In response, ld. AR of the assessee attended and submitted the information as called for. 3. During the course of assessment proceedings, the Assessing Officer observed from profit & loss account, audit report and books of account submitted before him that assessee has claimed legal and professional expenses to the extent of 19,73,700/- out of which Rs. 15,00,000/- was incurred as legal expenses. The assessee was asked to submit the details of the expenditure. In response vide letter dated 18.01.2016, assessee submitted that assessee has paid Rs. 15,00,000/- to Mr. Kalra,....
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....tendance register and does not issue any formal appointment letter etc. Regarding the employment of 3 children of the assessee it is informed that all the 3 children have been subject to TDS applicable to salaried employees and have been issued form 16. This should be adequate evidence to prove their employment. Regarding the working days in the present were of the electronics employees are allowed and they do operate from the residences. All these 3 children of the assessee have been given a very small salary keeping at mind that they do not have a report of duty every day instead they can operate from home and visit the office premises as and when required. If these were required to be in Delhi all the time then perhaps their sal....
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....ing to Rs. 7,04,961/-. 3.3 Further he observed that the assessee has herself incurred certain travelling expenditure to the extent of Rs. 2,14,450/- towards travelling to Ahmedabad and USA. Since assessee could not furnish any document which could prove the business need of incurring the abovesaid expenses, he treated the same as non-genuine and observed that assessee has claimed personal expenses and disallowed the same u/s 37(1) of the Act. 3.4 Further he disallowed 20% of the depreciation on vehicle expenditure as it pertains to personal expenditure. 4. Aggrieved with the above order, assessee preferred an appeal before the ld. CIT(A) and filed detailed submissions. After considering the detailed submissions of the assessee, ld.....
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.... Disallowance of Travelling expenses incurred :- That the Ld. AO has erred in appreciating the true nature expenses of Rs. 7,04,961/- & their allowability under the Income Tax Act. 5. That the Ld. AO has erred in appreciating the true nature of travelling expenses of Rs. 2,14,450/- of the proprietor & their allowability under the Income Tax Act. 6. That the Ld. AO has erred in concluding that Rs. 32,888/- i.e. 20% of car depreciation, insurance, telephone expenses are personal in nature hence not allowable as business expenses." 6. Since none appeared on behalf of the assessee and this appeal being very old we disposed off the appeal with the assistance of ld. DR of the Revenue. Ld. DR of the Revenue brought to our noti....