9911796707
TMI Blog1999 (12) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... unsel placed reliance on the decision of Tribunal in the case of Rajasthan Automobiles in ITA No. 734/Jp/93, dt. 18th Nov., 1999. 2.1. I have gone through the said decision. In that case of disallowance of Rs. 500 made out of telephone expenses has been confirmed by the Tribunal. It is true that in that case an ad hoc disallowance of 4,000 made out of travelling and conveyance allowances was deleted on the ground that no instance of expenditure of disallowable nature was pointed out by the AO. The element of personal user of telephone installed at residence, cannot be ruled out. However, considering the volume of business, I am of the view that disallowance of Rs. 7,000 made out of telephone expenses of Rs. 21,650 is excessive. The AO is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lable at business premises during the course of survey. The officers of the Department recorded the admission of Shri Giriraj Ratan Kothari in the said statement. Shri Giriraj Ratan Kothari in his statement dt. 31st Oct., 1988, admitted that the excess cash of Rs. 5,640.12 represents undisclosed income of the firm and he admits the same as undisclosed income. The learned counsel submitted that a perusal of Q. No. 11 of the said statement shows that the leading question was put to Shri Giriraj Ratan Kothari by the AO. Such a leading question is not permissible in view of s. 141 of Evidence Act. So-called surrender made by Shri Giriraj Ratan Kothari is not valid. The employee was not authorised to give any such statement on behalf of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a sum of Rs. 5,640 was found in a separate bag and was not found along with cash pertaining to the business amounting to Rs. 44,185 found during survey. The admission made by the employee during the survey cannot be treated as an binding admission made by the assessee. The AO has not even recorded the statement of the assessee in relation to the aforesaid excess cash. Before making the aforesaid addition, the AO could record the statement of the assessee and ascertain the true facts. It was contended on behalf of the assessee that Rs. 5,638 represents the amount of savings from withdrawals made for household expenses. The AO has rejected the said explanation simply by saying that such an contention is not acceptable. The AO has not mentione ..... X X X X Extracts X X X X X X X X Extracts X X X X
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