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TMI Blog2012 (11) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... oubted. It is also true that assessee is required to furnish the necessary evidence called for by AO which he was unable to satisfy, thus considering the nature of expenses and the totality of facts, it will meet the ends of justice if the expenses of disallowance is restricted to Rs.30,000/- instead of Rs.76,740/- made by A.O. - partly in favour of assessee. Disallowance out of telephone expenses - Held that:- The assessee has submitted that out of total telephone expenses of Rs.1,52,703/- the expenses of telephone installed at shop is of Rs.1,32,972/-, thus disallowance at 20% is on higher side ends of justice will be met if disallowance is restricted to 10% - partly in favour of assessee. - I.T.A. No .445/AHD/2010. - - - Dated:- 19- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tly allowed the appeal of assessee. Aggrieved by the order of CIT (A), the assessee is now in appeal before us. 4. Ground No.1 is with respect to disallowance of Rs.1,04,880/- being 10% of the salary. 5. During the course of assessment proceedings on verification of the details filed by the assessee it was noticed by the A.O. that assessee has not filed complete details in respect of salary expenses of Rs.10,48,800/-. From the salary register produced before A.O., A.O. concluded that the register was made in a single sitting. He also observed that the register did not have any revenue stamp and in some cases, there was no signature of the recipient. Revenue stamp was affixed only in case of few employees where the salary exceeded Rs.5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s.1,04,880/- will stand confirmed. 8. Aggrieved with the order of the CIT (A), the assessee is now in appeal before us. 9. Before us, the Ld. A.R. submitted that the assessee had filed complete details relating to salary expenses. The A.O. considered the salary register to be not reliable only for the reason that revenue stamps were not used in all cases while making payment of salary. A.O. has not cited any specific instance or worked out the quantum of salary expenses for which signature of employee was not found. The A.O. had wrongly concluded that register was made in a single sitting. He thus urged that the addition made by A.O. be deleted. The Ld. D. R. on the other hand supported the order of A.O. and CIT (A). 10. We have hear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order of CIT (A), the assessee is now in appeal before us. 14. Before us the Ld. A.R. submitted that the payments are made mostly by cheques. He also submitted that the expenses are incurred on daily basis. Some of the bills would not be produced as they were misplaced. Considering the nature of expenses he urged that the amount be allowed on commercial basis. On the other hand, the Ld. D.R. submitted that the A.O. was fully justified in disallowed the expenses for the reason that the expenses disallowed were that were incurred in cash and there was no supporting evidence. He thus supported the order of A.O. and CIT (A). 15. We have heard the rival submissions and perused the material on record. We find that the total expenditure of p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wed aggregate amount of Rs.65,302/-. Assessee carried the matter before CIT (A). CIT (A) upheld the disallowance. The assessee is therefore now in appeal before us. 18. Before us the Ld. A.R. submitted that out of total telephone expenses of Rs.1,52,703/-, expenses of Rs.1,32,972/- pertains to shop and only Rs.19,731/- pertains to telephone at residence. With respect to vehicle expenses he submitted that vehicle is used by partner for the purpose of business. He thus urged that the disallowance be deleted. Ld. D.R. on the other hand supported the order of A.O. 19. We have heard rival submissions and perused the material on record. We find that A.O. has disallowed the expenses for the reason that personal use cannot be ruled out. The d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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