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TMI Blog2019 (6) TMI 281X X X X Extracts X X X X X X X X Extracts X X X X ..... itted before the CIT(A) that all payments were made by account payee cheques, but he had not produced complete bills and vouchers before the AO. We, therefore, do not find any justification to interfere with the order of the CIT(A) on this addition. Disallowance out of vehicle expenses - it is observed that the depreciation is included in it - HELD THAT:- The depreciation is fixed expenditure in nature whether it is used exclusively for the business or partially for personal use. Thus, the element of some personal use has no role to play while granting depreciation on vehicle. Therefore, the assessee deserves deduction of depreciation and rest of the addition deserves to be sustained for want of proper verification. In respect of telephone ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us, the addition so made needs to be deleted. 2. That the learned Commissioner of Income Tax (Appeals) has erred in law and on facts in sustaining a disallowance of ₹ 1,03,295/- and ₹ 13,521/- out of total disallowances of ₹ 2,06,589/- and 27,042/- on account of vehicle running, maintenance, depreciation and telephone expenses and the said disallowance being made on account of alleged personal element involved needs to be deleted, as such. 3. That the learned Commissioner of Income Tax (Appeals) has grossly erred in sustaining the part disallowance and that too, without providing to the assessee, a fair, proper and meaningful opportunity of being heard, thereby violating the principles of natural justice and thus, su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /5th of the said expenses to prevent the revenue leakage against personal use of vehicle and accordingly made an addition of ₹ 2,06,589/-. 4. Further, the Assessing Officer noticed that the assessee had debited telephone expenses to the extent of ₹ 1,35,211/- in the profit and loss account. The assessee did not maintain any personal telephone call register for partners/employees. Therefore, in order to prevent leakage of Revenue on account of personal use, he disallowed 1/5th of these expenditures, amounting to ₹ 27042/- u/s. 37(1) of the Act. The assessee carried the matter in appeal before the ld. CIT(A), who after considering the submissions of the assessee upheld the addition of ₹ 5 lacs on account of purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hese would have been incurred out of imprest account. However, the findings of the Assessing Officer could not be rebutted properly. Therefore, the lower authorities are justified in making addition of ₹ 5,00,000/-. The primary onus lies upon the assessee to prove the expenses claimed in the profit and loss account. The assessee has submitted before the ld. CIT(A) that all payments were made by account payee cheques, but he had not produced complete bills and vouchers before the Assessing Officer. We, therefore, do not find any justification to interfere with the order of the ld. CIT(A) on this addition. 8. Regarding disallowance out of vehicle expenses of ₹ 1,03,295/-, it is observed that the depreciation of ₹ 49093/- i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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