M/S. Vohra Foods Pvt. Ltd., vs The Income-Tax Officer,, Ferozepur on 13 February, 2019
10. The fifth and last ground is in respect of disallowance of Rs.55000, made
and confirmed at 1/10th of the expenditure on vehicles, being cars, toward the
estimated personal (non-business) user of the same by the directors. Without doubt,
the user of the cars of the assessee-company by it's directors and their family
members for their personal purposes cannot be ruled out, and neither in fact being
claimed at any stage, including before us. The only issue therefore that survives is
its quantification, which at 1/10th thereof cannot but be regarded as reasonable,
which aspect (reasonability) has been assailed before the tribunal without stating as
to how it could be regarded as excessive. Estimation is a process known to
assessment, and which would necessarily include an element of subjectivity.
Rather, it is the assessee, who ought to have maintained the record of user thereof,
to question the reasonability of the estimation. Further, no reason for including
general expenses while computing this disallowance has been stated in the order by
6 ITA No. 86/Asr/2014 (AY 2010-11)
Vohra Foods Pvt. Ltd. v. ITO
the assessing or the first appellate authority. The same therefore cannot be
sustained. Subject to this, no interference is called for. I decide accordingly, and
the assessee gets part relief.