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2014 (12) TMI 1057 - AT - Income TaxVarious expenses disallowed - Discrepancy in the account of M/s Nadoka Crushers – rate of net profits to be 8.65% reasonable or not – Held that:- Assessee could not furnish required details for verification of the AO as well as the CIT(A) - The genuineness of the expenses is to be seen by the AO as the onus is on the assessee to prove that the expenditure wholly and exclusively was incurred for business purposes - non business purposes cannot be ruled out under these heads - CIT(A) confirmed the addition appears to be higher side, therefore, the additions under the head jeep vehicle expense, except depreciation on jeep and motor cycle is upheld and telephone expenses up to 10% - the expenses disallowed out of Diwali expenses is reasonable - out of expenses for labour, which is major in nature - The assessee’s maintenance record is poor and further lower authority has not specified the particular defects in muster roll except in the month of August, 2005 the main receipt from the labour supply of the assessee. The addition of Rs. One lac in the interest of justice as against the confirmation of ₹ 1.5 lacs - CIT(A) was reasonable to confirm 10% addition under the head staff mess expenses for non-business purposes - with respect to difference in the M/s Nakoda Crushers, the assessee himself has not shown the expense for which, the argument taken by the assessee not acceptable as who has prevented to the appellant for claiming these expense - assessee himself admitted different cheque given and amount credited by the M/s Nakoda Crushers at ₹ 410 - M/s Nakoda Crushers had shown receipt of cheque of ₹ 23,662/- has not been reconciled with evidence before the lower authorities, for which sufficient time has been given to the assessee - the order of the CIT(A) under this head is upheld - the last ground of appeal is against working of net profit @ 8.65% by making the additions – substantial relief given in case of the assessee is upheld, therefore, after appeal effect, the assessee’s net profit will be reasonable – Decided partly in favour of assessee.
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