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2018 (6) TMI 1189 - AT - Income TaxDisallowance of 10% of the total expenditure incurred by the assessee on ad hoc basis - Held that:- when the assessee has received billing as per milestone and from the milestone till the close of the year there are no expenditure identified by the ld AO then there cannot be any work in progress in the business of the assessee. AO could not find out that whether there is such expenditure exists or not. It was also not found by the ld AO that the assessee has incurred substantial expenditure. If the milestone before the close of the year. As the assessee is engaged in the business of consultancy services definitely there can be sum over lap of the expenses between two years. However that does not give any rise to the AO to disallow the expenditure @10% and treat it as work in progress - Decided against revenue Disallowance of repair and maintenance - AO stated that this expenditure is incurred for wiring electricity etc is capital in nature for the reason that assessee is carrying business in rented premises - Held that:- the expenditure incurred by the assessee cannot be said to be an expenditure of an enduring nature. The above sum is paid by the assessee on 01.11.2009 to M/s. Sterling and Wilson Pvt. Ltd for wiring and electrical accessories to make the lease premises usable for the business of the assessee - Decided against revenue Disallowance of consultancy charges - Held that:- The details submitted were copies of the income tax return, TDS certificate, copies of travelling expenses, copies of contract and bank statement to prove the expenditure. In view of these overwhelming details submitted by the assessee before the ld CIT(A), he deleted the disallowance. Even otherwise if before the ld AO the parties did not respond or did not submit the requisite details, he does not have any authority to apply the ad hoc percentage for making disallowance. In view of this we do not find any infirmity in deleting the disallowance - Decided against revenue
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