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Income Tax Appellate Tribunal, DELHI BENCH ‘A’, NEW DELHI
Before: Sh. Kul BharatDr. B. R. R. Kumar
Per Dr. B. R. R. Kumar, Accountant Member:
The present appeals have been filed by the assessee against the orders of ld. CIT(A)-18, New Delhi dated 18.01.2019 and 31.01.2019.
In following grounds have been raised by the assessee:
“1. On the facts and in the circumstances of the case and in law the Commissioner of Income-tax (Appeals) erred in disallowing Annual Maintenance Charges, Housekeeping charges upto 1NR 7,05,504/- without appreciating the fact that these are fully business expedient.
2. On the facts and in the circumstances of the case and in law the Commissioner of Income-tax (Appeals) erred in disallowing Audit fees, Computerization charges and Insurance expenses upto INR 57,637/- without appreciating the fact that these are fully business expedient.
3. On the facts and in the circumstances of the case and in law the Commissioner of Income-tax (Appeals) erred in disallowing Rate & Taxes upto INR 1,45,600/- without appreciating the fact that these are fully business expedient.
4. On the facts and in the circumstances of the case and in law the Commissioner of Income-tax (Appeals) erred in disallowing various other expenses (Medical Expenses, Postage & Telegram, Printing & Stationery, Salary & wages. Staff Welfare, Telephone expenses, Office Expenses, Misc. Expenses upto INR 6,64,033/-without appreciating the fact that these are fully business expedient.
5. On the facts and in the circumstances of the case and in law the Commissioner of Income-tax (Appeals) erred in disallowing vehicle and various other expenses (Car & Motorcycle expenses, Conveyance, Gardening expenses, Diwali expenses, Legal & Prof charges, travelling expenses upto INR 2,25,269/- without appreciating the fact that these are fully business expedient.”
In following grounds have been raised by the assessee:
1. On the facts and in the circumstances of the case and in law the Commissioner of Income-tax (Appeals) erred in disallowing various expenses (Car & Motorcycle, Computerization, Conveyance, Medical Expenses, Postage & Courier, Printing & Stationery, Salary & wages, Staff Welfare, Telephone expenses) upto INR 9,42,661/- without appreciating the fact that these are fully business expedient.
In , following grounds have been raised by the assessee:
1. On the facts and in the circumstances of the case and in law the Commissioner of Income-tax (Appeals) erred in disallowing various expenses (Car & Motorcycle, Computerization, Conveyance, Medical Expenses, Postage & Courier, Printing & Stationery, Salary & wages, Staff Welfare, Telephone expenses) upto INR 10,39,833/- without appreciating the fact that these are fully business expedient.
Heard the arguments of both the parties and perused the material available on record.
The grounds pertains to disallowance on account of annual maintenance charges, housing keeping charges, computerization charges, printing & stationary, postage & telegram, motorcycle expenses, conveyance, gardening expenses, and Diwali expenses etc. We find that this issue is repetitive in nature over a period of four years. The Assessing Officer disallowed the amounts varying from 80% to 50% whereas the ld. CIT(A) restricted the same from 30% to 50% on different expenditures. The Tribunal having examined the entire affairs of the assessee for the A.Y. 2012-13 in held that ends of natural justice would be met by restricting the disallowance to 10% of the expenditure. In the absence of any new material before us and change of business or the expenditure pattern, following the order of the Co-ordinate Bench of Tribunal, we hereby restrict the disallowance to 10% for the appeals before us.