Shri Atul Vohra vs Deputy Commissioner Of Income Tax

PER AMITABH SHUKLA, AM

This appeal by the assessee is directed against the order of learned CIT(A), National Faceless Appeal Centre, Delhi dated 5^th August, 2025.

At the time of hearing, none appeared on behalf of the assessee. The only concern raised by the assessee in this appeal is against the action of the authorities below in making an addition of ₹10,49,000/- on account of personal expenses i.e., car loan, insurance charges, depreciation on car and salary to staff.

After considering the submissions of the learned Senior DR and perusing the material placed before us, we are of the view that the addition on account of personal expenses cannot be made merely on the basis of surmises and conjectures. The assessee in the present case is a partner in three firms and has claimed that the expenses were incurred purely for the purpose of his meetings with the clients. In our view, the expenses claimed by the assessee on this count are reasonable. The addition made by the authorities below on this count deserves to be deleted. Accordingly, the orders of the authorities below on this count are reversed and the addition of ₹10,49,000/- is deleted.

In the result, the appeal of the assessee is allowed.