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TMI Blog2012 (10) TMI 757X X X X Extracts X X X X X X X X Extracts X X X X ..... A) estimated disallowance made by the AO has been found by the CIT(A) fair and reasonable - Also the addition on expenditure towards house hold expenses has been made by the AO, considering status of the assessee and totality of facts and circumstances and the said estimate has not been found unreasonable by CIT(A) while not an iota of evidence regarding sources of meeting household expenses nor even break up of expenses under broad heads has been brought to notice, thus addition made by the AO & upheld by CIT(A), is justified - against assessee. - ITA No.2195/Del/2007 - - - Dated:- 19-10-2012 - SHRI I.C. SUDHIR, SHRI A.N. PAHUJA, JJ. Assessee by Shri V.K. Gall, AR Revenue by Ms. Y.S. Kakkar, DR O R D E R A.N. Pahuja:- This appeal filed on 03.05.2007 by the assessee against an order dated 28.12.2006 of the ld. CIT(A)-Meerut for the AY 2003-04, raises the following grounds:- 1. That the authorities below have erred in law as well as on the facts of the case by making and upholding the disallowance/addition of Rs.1,38,756/- as the details given hereunder and the disallowance/ 2. addition so made are unjust, unwarranted, unlawful and devoid of any suppor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0/- beside Rs.30,000/- on account of running of car. To a query by the AO, seeking production of log book of the car, the assessee submitted that no log book was maintained nor the assessee claimed that she or her family members owned separate car for personal purposes. In these circumstances, the AO disallowed 1/4th of the expenses amounting to Rs.7,500/- for personal use of car beside disallowance of 25% of depreciation on car, resulting in addition of Rs.18,694 [7500+11,194]. 3.3.Likewise,the AO disallowed 25% of the expenditure on personal use of phones installed at the residence and shop in the name of Manoj Gupta and Kamna Traders beside expenses for the mobile phone provided to the manager. 3.4 The AO also noticed that the assessee reflected household expenses of only Rs.24,000/-i.e. same as in the preceding AY 2002-03. To a query by the AO, seeking details of the family and house hold expenses, the assessee submitted that she had one kid. The assessee did not submit any break up of household expenses nor claimed that her husband contributed towards the household expenses. Accordingly, the AO estimated household expenses at Rs.60,000/- resulting in addition of Rs.36,000/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t or his family members owned separate car for personal purposes. 4.2.1 During the appellate proceedings also, the appellant was asked to produce the working of the basis of which such claims were made. Except for a general reply, no details in this regard were produced on the basis of which such expenses were claimed. The addition on this account is sustained. (C) Depreciation on Car (Rs.11,194/-) 4.3 Regarding depreciation on car, an amount of Rs.11,194/- was disallowed for the use other than business purposes of the appellant, I hold that this is a statutory disallowance and has to be allowed full as per prescribed rules even the asset has been used for a day. A disallowance on account of personal use or other than the business cannot be made. The disallowance on account of depreciation on car is deleted. (D) Telephone expenses (Rs.8,111/-) 4.4 An amount of Rs.8,111/- being 1/4th of the telephone expenses were disallowed by the Assessing Officer on the ground that phones for personal purposes cannot be ruled out. 4.4.1 The appellant was asked to file the working in this regard on the basis of which the entire telephone expenses were claimed. No working has been s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the aforesaid findings of the ld. CIT(A),upholding various disallowances .The ld. AR on behalf of the assessee while carrying us through the impugned order contended that the ld. CIT(A) was not justified in upholding the disallowances without rejecting the books of account. In this connection, the ld. AR relied upon the decision of Hon ble Apex Court in State of Orissa Vs. Maharaja Shri V.P. Singh Dev (1970) 76 ITR 690(SC). However, the ld. AR did not make any submissions on household expenses added by the AO. To a query by the Bench, the ld. AR pointed out that assessee s turnover was Rs.22,76,200/-. 6. On the other hand, the ld. DR supported the findings of the ld. CIT(A) and argued that since the AO made disallowances of various expenses for want of bills and vouchers in terms of the provisions of section 37(1) of the Act, the books of account were not required to be rejected. The disallowances on account of personal use of car and telephones were on account of their personal use while household expenses were not substantiated with any evidence whatsoever, the ld. DR added. 7. We have heard both the parties and and gone through the facts of the case. At the outset, we may po ..... X X X X Extracts X X X X X X X X Extracts X X X X
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