2012 (5) TMI 740 - AT - Income Tax

Summary

Issues involved: Delay in presenting the appeal before the Tribunal, computation of income under the head house property, disallowance of expenses.

Delay in presenting the appeal: The appeal by the assessee was delayed by three days, but the Tribunal condoned the delay after being satisfied with the genuineness of the cause presented in the affidavit.

Computation of income under the head house property: The assessee owned three properties, with one self-occupied flat in Mumbai and two flats in Pune. The Assessing Officer computed income from the Pune flats at a higher value than declared by the assessee. The Tribunal, following precedent, held that in the absence of actual rent received, the annual value should be determined based on municipal valuation, resulting in the deletion of an addition of &8377; 2,21,494.

Disallowance of expenses: The Assessing Officer disallowed 20% of car expenses, telephone expenses, and depreciation on the car due to the lack of log books or call registers. The Tribunal, considering the lack of documentation, reduced the disallowance from 20% to 15% based on the overall circumstances of the case.

Conclusion: The appeal was partly allowed by the Tribunal, with the order pronounced on May 31, 2012.