Chetan Ravi Batra, Mumbai vs Assessee

BEFORE HON'BLE S/SHRI H.L. KARWA, PRESIDENT AND B.R.BASKARAN (AM) सव ी एच.एल. कावा, अ य एवं बी.आर.बा करन, लेखा सद य आयकर अपील सं./I.T.A. No.2757/Mum/2012 ( नधारण वष / Assessment Year :2006-07)

Chetan Ravi Batra बनाम/ Income Tax Officer 20(1)(2), B-607, Blue Bell Apartment, Vs. Piramal Chambers, Near Basant Cinema, Lalbaug, Chembur (E), Parel, Mumbai. Mumbai-400012 (अपीलाथ /Appellant) .. ( यथ / Respondent)

थायी ले ख ा सं . /जीआइआर सं . /PAN/GIRNo. :AFAPB3852N

अपीलाथ ओर से / Appellant by : Shri N M Porwal यथ क ओर से/Respondent by Shri Neil Philips

सन ु वाई क तार ख / Date of Hearing : 1.1.2015 घोषणा क तार ख /Date of Pronouncement : 16.01.2015

आदे श / O R D E R

Per B.R.BASKARAN, Accountant Member:

The appeal filed by the assessee is directed against the order dated 16.2.2012 passed by Ld CIT(A)-32, Mumbai and it relates to the Act for assessment year 2006-07.

2. The assessee is aggrieved by the decision of the ld. CIT(A) in respect of the following four issues :

a) addition on account of unexplained expenditure of Rs.2,52,384/-;

b) addition on account of unexplained cash credit of Rs.180,100/-;

c) addition on account of disallowance of expenditure of Rs.15,361/-;

and

d) disallowance of interest paid on housing loan amounting to Rs.94,367/-.

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3. The assessee filed his return of income for the year under consideration declaring a total income of Rs.1,15,967/-. The assessee did not co-operate with the AO and hence, the AO completed the assessment to the best of his judgment under section 144 of the Income Tax Act, 1961 (the Act) by making various additions. The appeal filed by the assessee before the ld.CIT(A) was partly allowed. Still aggrieved by the order of ld. CIT(A), the assessee has filed this appeal before the Tribunal.

4. The ld. Counsel appearing for the assessee submitted that unexplained expenditure is relating to credit card payment and they were paid through bank account. Accordingly, he submitted that source of payment are explained and hence the ld. CIT(A) was not justified in confirming the addition. With regard to the deposit made in the bank account, which was added as unexplained cash, the ld. AR submitted that the assessee having opening balance of Rs.2,63,726/- besides the professional receipts of Rs.4,28,000/- declared during the year. He submitted that the assessee has utilized these funds for making deposits into the bank. With regard to the disallowance of out of expenditures, the ld. AR submitted that the assessee has claimed aggregate expenditure of Rs.76,807/- only against the professional receipt of Rs.4,28,000/- and hence the AO was not justified in disallowing the 20% of the expenses. With regard to the disallowance of interest paid on self occupied property, the ld. AR submitted that the AO has disallowed the same only for want of proof. Accordingly, he submitted that the ld. CIT(A) was not justified in confirming the disallowance.

5. We have heard the ld. DR and perused the record. With regard to the addition relating to unexplained expenditure, unexplained cash credit and interest on housing loan, we are of the view that the same requires 3 I T A N o 2 7 5 7 / Mu m / 2 0 1 2

verification at the end of the AO, since the assessee is raising the new contentions which were not considered by the AO. Though these contentions were raised before Ld CIT(A), yet the assessee is pleading that some more documents shall be placed before the AO. Accordingly, we set aside the order of ld. CIT(A) on the above said issues, and restore them to the file of the AO with a direction to examine them afresh by duly considering the submissions made by the assessee and information furnished and take proper decision in accordance with law.

6 With regard to the disallowance of expenditure out of conveyance, telephone, vehicle, miscellaneous and professional fees, we are of the view that the disallowance made at 20% of the total expenditure is on higher side. Accordingly, we are of the view, it would meet ends of justice, if the disallowance is restricted to 10%. We direct the AO accordingly.

7. In the result, the appeal of the assessee is partly allowed for statistical purposes.

The above order was pronounced in the open court on 16th Jan,2015.

घोषणा खुले यायालय म दनांकः 16th Jan 2015 को क गई ।

sd sd

(एच.एल. कावा/ H.L. KARWA) (बी.आर. बा करन,/ B.R. BASKARAN) अ य / PRESIDENT लेखा सद य/Accountant Member मब ुं ई Mumbai: 16th Jan, 2015.

व. न.स./ SRL , Sr. PS 4 I T A N o 2 7 5 7 / Mu m / 2 0 1 2

आदे श क त ल प अ े षत/Copy of the Order forwarded to :

1. अपीलाथ / The Appellant

2. यथ / The Respondent.

3. आयकर आयु त(अपील) / The CIT(A)- concerned

4. आयकर आयु त / CIT concerned

5. वभागीय त न ध, आयकर अपील य अ धकरण, मब ुं ई / DR, ITAT, Mumbai concerned

6. गाड फाईल / Guard file.

आदे शानस ु ार/ BY ORDER, true copy सहायक पंजीकार (Asstt. Registrar) आयकर अपील य अ धकरण, मुंबई /ITAT, Mumbai