Gautam R Chadha, New Delhi vs Department Of Income Tax

DCIT, Vs. Gautam R Chadha, Circle-32(1), Through L/H Smt. Ratna Chadha, New Delhi. D-284, 1st Floor, Defence Colony, New Delhi. PAN: AADPC5798A

(Appellant) (Respondent)

Assessee By : Shri Ashok Sikka, Advocate Department By : Shr T. Vasanthan, Sr. DR

Date of Hearing : 28.04.2015 Date of Pronouncement : 29.04.2015

ORDER PER R.S. SYAL, AM:

This appeal by the Revenue is directed against the order passed by

the CIT(A) on 28.3.2013 in relation to the assessment year 2008-09.

2. The first ground is against the deletion of addition of Rs.9,50,500/-

made u/s 14A of the Act.

ITA No.3764/Del/2013

3. Briefly stated, the facts of the case as given in the assessment order

are that assessee earned total exempt income of Rs.1,18,62,394/-.

Invoking the provisions of Section 14A read with Rule 8D, the AO

computed disallowance u/s 14A at Rs.9,50,500/-. The ld. CIT(A)

ordered for the deletion of addition.

4. We have heard the rival submissions and perused the relevant

material on record. It is observed that the ld. CIT(A) has mentioned in

the impugned order that the AO has wrongly computed the disallowance

by considering the accounts of proprietorship concern of the assessee,

namely, M/s Tirun Travel Marketing and the separate accounts

maintained by the assessee. There is apparent conflict in the factual

position recorded by the AO as well as the ld. CIT(A). The ld. first

appellate authority deleted the addition by relying on the factual position

which is not borne out from the assessment order. In our considered

opinion, the ends of justice would meet adequately if the impugned

order on this issue is set aside and the matter is restored to the file of

AO. We order accordingly and direct the AO to decide this issue afresh

2 ITA No.3764/Del/2013

as per law, after allowing a reasonable opportunity of being heard to the

assessee.

5. The only other ground is against restricting the disallowance of

personal expenses to 1/10th instead of 1/6th made by the AO. The AO

disallowed 1/6th of Telephone expenses, Vehicle expenses, Diwali

expenses, Travelling, Depreciation and Electricity expenses by treating

them for personal use. The ld. CIT(A) reduced the disallowance to

1/10th . In our considered opinion and viewing the totality of the peculiar

facts and circumstances of the instant case, the ld.CIT(A) was justified

in reducing the disallowance to 1/10th . This ground is not allowed.

6. In the result, the appeal is partly allowed for statistical purposes.

The order pronounced in the open court on 29.04.2015.

Sd/- Sd/- [C.M. GARG] [R.S. SYAL] JUDICIAL MEMBER ACCOUNTANT MEMBER

Dated, 29th April, 2015. dk

3 ITA No.3764/Del/2013

Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT (A) 5. DR, ITAT

AR, ITAT, NEW DELHI.

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