Assessee Creative Ideas, New Delhi ITO, Ward- 28(4), New Delhi

INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH “SMC-2”: NEW DELHI
BEFORE SHRI H. S. SIDHU, JUDICIAL MEMBER
A N D
SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER
(Through Video Conferencing)
ITA No. 5819/Del/2019
(Assessment Year: 2013-14)

M/s Creative Ideas,
B-304, New Friends Colony,
New Delhi-110 065.
PAN: AAGFC4306H
(Appellant) 

Vs.

ITO,
Ward-28(4),
New Delhi
(Respondent)

Assessee by : Shri C. S. Aggarwal, Sr. Advocate;
Revenue by: Shri R. K. Gupta, Sr. D. R.;
Date of Hearing 04/11/2020
Date of pronouncement 02/12/2020

O R D E R

PER PRASHANT MAHARISHI, A. M.

1. This appeal is filed by M/s Creative Ideas, New Delhi (the Appellant) for Assessment Year 2013-14 against the order of the CIT (Appeals)-10, New Delhi dated 15.05.2017 in appeal filed by the assessee against the assessment order passed under Section 143(3) of the Income Tax Act, 1961 (the Act) by Income Tax Officer, Ward 28(4), New Delhi, dated 18.02.2016 was challenged wherein an addition of Rs.5,02,600/- was made and the ld. CIT (Appeals) upheld the disallowance to Rs.3,85,548/-. This is the solitary ground of appeal.

2. The brief facts of the case show that assessee is a partnership firm engaged in the business of export of high fashion ladies garments. It filed its return of income on 30.09.2013 declaring total income of Rs.10,80,050/-. The case was fixed up for scrutiny and the learned Assessing Officer noted that assessee has claimed the expenses of communication of Rs.2,97,001/-, travelling and conveyance of Rs.45,44,356/-, depreciation on car Rs.1,72,986/- and insurance on car of Rs.11,660/-. These expenses totaling to Rs.50,26,000/- was examined and held that those are not fully allowable to the assessee. The ld. AO disallowed 10% of such expenses amounting to Rs.5,02,600/- for the reason that it is ‘in the interest of Revenue and to avoid leakage of revenue”. Accordingly, total income of the assessee was assessed at Rs.16,05,970/-.

3. Assessee preferred appeal wherein the ld. CIT (Appeals) deleted the disallowance partly, but upheld to the extent of Rs.3,85,548/-. Therefore, assessee is in appeal before us.

4. We have heard learned Sr. Advocate, Shri C. S. Aggarwal on behalf of assessee and Shri R. K. Gupta, Sr. DR on behalf of the Revenue.

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