Galgotia Publication (P) Ltd. Vs ACIT (ITAT Delhi)
The present assessee before us is a company and is an entity recognised by law, as a legal person, that exist in eyes of law independently with rights and liabilities. Thus no element of personal expenses by the Directors/Office bearers can be attributed, without, there being sufficient evidence in support. Admittedly, Ld.AO neither pointed out any instance of inflation in expenditure claimed by assessee, nor has given any finding regarding expenditure claimed by assessee being capital in nature, for purposes of disallowance. It is further observed that Ld.CIT(A) made general observation for sustaining addition made by Ld.AO. It is observed from assessment order that assessee filed books of accounts, vouchers and bank statements before Ld.AO. If Ld.AO was not satisfied with details filed by assessee, he could have pointed out at assessment stage itself. Under such circumstances we are not inclined to sustain the addition made by Ld.AO.
FULL TEXT OF THE ITAT JUDGMENT
Present appeals have been filed by assessees against separate orders dated 29/01/15 passed by Ld. CIT (A)-1, for assessment years under consideration on the following grounds of appeal:
ITA 1857/Del/2015 A.Y. 2008-09
“1. That the order of Ld. CIT(Appeals) is bad in law and on facts and in the circumstances of the case.
2. That the Ld.CIT(A) erred in treating the ground no.2 agitating the issuing of notice u/s 153A as general and thereby not adjudicating upon the same.
3. That the Ld. CIT(A) erred in sustaining the ad hoc disallowance @ 10% on account of personal use amounting to Rs.97,351/- out of following expenses:-
