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2014 (10) TMI 1021 - ITAT KOLKATADisallowance @ 5% on account of various general expenses - disallowance by restricting @ 5% on account of business expenditure can be made or not in the absence of any reasoning? - HELD THAT:- Disallowance purely by resorting to ad hoc method cannot be made. These are business expenditure, and in the absence of cogent reason, the disallowance should not have been made. We hold that disallowance made by AO is without any basis and hence deserves to be deleted. Accordingly, we delete the disallowance. This issue of assessee’s appeal is allowed. Disallowance of employees’ contribution to ESI & P.F. - HELD THAT:- We find that in all the three AYs, the dates are noted by the AO and the payments are made within the due date of filing of return of income u/s.139(1) of the Act as is evident from the assessment order. Now, this issue stands covered in favour of assessee and against the Revenue by the decision of Hon’ble jurisdictional High Court in the case of CIT v. M/s Vijay Shree Limited [2011 (9) TMI 30 - CALCUTTA HIGH COURT] - Decided in favour of assessee. Assessment u/s 153A - HELD THAT:- there is no seized incriminating materials found during the course of search in this case, and without any evidence the AO has made addition of deemed dividend. The issue is squarely covered in favour of assessee and against the Revenue by the decision of Special Bench in the case of All Cargo Global Logistics Ltd., v. DCIT [2012 (7) TMI 222 - ITAT MUMBAI(SB)]as well as by the decision of Jai Steel (India) [2013 (6) TMI 161 - RAJASTHAN HIGH COURT]. As the issue is covered in favour of assessee, we confirm the order of CIT(A) deleting the addition. This common issue of Revenue’s appeals is dismissed. Disallowance of loss incurred on account of expenses - HELD THAT:- As the issue is exactly identical and no incriminating materials were found during the course of search as noted by CIT(A), we confirm the order of CIT(A) in deleting the addition. This common issue of Revenue’s appeals is dismissed.
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