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TMI Blog2013 (12) TMI 1266X X X X Extracts X X X X X X X X Extracts X X X X ..... f details of personal usage, confirmation of personal usage cannot be denied - In case of motor car expenses only 10% of the expenses, can be disallowed towards personal a usage – Partly allowed in favour of assessee. Addition on account of household expenses – The assessee has shown a sum of Rs. 30,000 towards household withdrawals - The assessee's wife had also shown household withdrawals of Rs.13,756 – Held that: - Keeping in view the gross receipts of Rs. 23 lakhs of assessee, the AO estimated household expenses of Rs.10,000/- per month - Many expenses which has been claimed were held to be bogus by the Assessing Officer - Sufficient cash which is shown to have been incurred towards such bogus expenses, is available with the assessee – Decided in favour of assessee. - ITA No. 976/Chd/2009 - - - Dated:- 8-2-2013 - Shri T. R. Sood, A. M And Ms. Sushm A Chowla, JM,JJ. For the Appellant : Shri N. K. Garg For the Respondent : Shri N. K. Saini ORDER Per T. R. Sood, A.M. This appeal is directed against the order passed by the ld. CIT(A), Rohtak dated 16.7.2009. 2. In this appeal the assessee has raised 17 grounds of appeal out of which grounds no. 1 to 8, 11,1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Authority has wrongly and illegally confirmed addition of Rs. 90,000/- on the basis of no household expenses besides being highly excessive and arbitrary. 16. That the appellate authority wrongly and illegally interest the charging of interest u/s 234-B and 234-D." 17 That the appellate authority wrongly and illegally given a suo-moto finding in respect of initiation of penalty proceedings u/s 271(1)(c) although there is no ground of appeal before the appellate authority nor any notice is given to the appellant in this respect." 3. Ground No. 9 - After considering the rival submissions we find that during the assessment proceedings the Assessing Officer noticed that the assessee has claimed a sum of Rs. 67,672/- towards entertainment expenses. The assessee was required to furnish the bills for expenses exceeding Rs. 5,000/- but the assessee did not file any bills rather copies of internal vouchers were filed alongwith six bills. It was noticed that bills which were filed, were issued by Hotels at Jalandhar, Dehradun, Manali,Siliguri, Ludhiana etc. on a same type of paper and the bills did not bear even the address of the Hotels. It was further explained by the assessee that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... drinks etc. to such agents and for these items bills are not generally available. In support of this the contention he filed a copy of RCM times (monthly) for the year 2004 which contain details of tour programme of its leader including the assessee, was mentioned. The Assessing Officer noticed that these charts did not show that what was to be provided in these meetings who spent on such snacks etc. Accordingly he allowed only asum of Rs. 90,717/- and disallowed balance amount of Rs. 5,41,712/-. The addition was confirmed by the ld. CIT(A). 8. Before us, the ld. counsel of the assessee submitted that the assessee was engaged in the business of marketing agent (net working). The assessee was required to create net working and his remuneration depend on the strength of the net working for which the assessee was required to travel frequently to create bigger net work. The assessee used to increase the same by appointing sub-agents because that would increase the remuneration of the assessee. What ever bills for traveling extra can be located, had already been filed but the Assessing Officer has not appreciated that most of the expenses relate to Taxi fare, local conveyance etc. fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing that for telephone only 10% of the telephone expenses is to be treated for personal usage. Accordingly we set aside the order of the ld. CIT(A) and direct the Assessing Officer to allow depreciation on purchase of Nokia Hand Set and restrict the disallowance of expenses on account of personal usage to 10%. 15 Ground No. 14 - During the assessment proceedings the Assessing Officer noticed that the assessee has claimed total car maintenance expenses including depreciation of Rs. 74,019/- out which he estimated 20% of the expense as personal expenses and disallowed a sum of Rs. 14,800/-. This ad was confirmed by the ld. CIT(A). 16 Before us, the ld. counsel of the assessee submitted that Chandigarh Bench of the Tribunal is consistently holding that in case of Motor Car expenses only 10% of the expenses, can be disallowed towards personal a usage. 17 On the other hand, the ld. DR for the revenue relied on the order of the Assessing Officer and the ld. CIT(A). 18 After considering the rival submissions we are of the opinion that in the absence of details of personal usage, confirmation of personal usage cannot be denied. However, the same is estimated at 10% and accordingly ..... X X X X Extracts X X X X X X X X Extracts X X X X
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