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2010 (11) TMI 605 - AT - Income TaxScrutiny - non serving of notice u/s 143(2) after one year - evidence of non receipt - Held that:- We are unable to understand what sort of evidence is required to support that the assessee has not received any notice. Once the assessee filed the affidavit that no notice was received, through its Director, it is for the Revenue to place on record evidence in support that the notice has been served. - provisions of section 292BB introduced by Finance Act, 2008 cannot be applied to the assessment year under consideration - order passed under section 143(3) is bad in law. Rejection of books of accounts - disallowance at 10% of the total expenses on account of non-production of books and vouchers for verification. - CIT(A) re-examined the issue in the light of the earlier orders in assessee's own case for A.Y. 201-02 and A.Y. 2002-03 in which the identical disallowance was restricted to 5%. - Held that:- the order of the CIT(A) is confirmed. Reasonable expenditure - disallowance u/s 40A(2)(b) - Hiring charges - assessee has hired outside tankers for transportation of LPG Bitumen etc. - assessee has made different hire charges to different parties ranging from Rs.90,000/- to Rs.1,80,000/- The A.O. invoked the provisions of section 40A(2)(b) of the I.T. Act and estimated 50% of the total payment of hire charges as reasonable and made disallowance of 50% amounting to Rs.3,90,000/- Held that:- assessee tried to distinguish the payments by filing various computation statements of individual persons by way of additional evidences to justify that these people have offered income and paid taxes. What we notice from the documents placed on record is that most of them were having marginal incomes and tax payable was very marginal at reduced rates whereas the firm could have paid tax at a higher rate had the amounts been paid reasonably. - Decided against the assessee.
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