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2012 (11) TMI 138 - AT - Income TaxAddition of Rs.10,61,294/- on account of estimated sales – Held that:- As Books of accounts of assessee are not rejected u/s 145(3) of the IT Act and the sales tax authorities have also assessed the sales as recorded by assessee - estimated addition made by AO is not sustainable in the eyes of law - ground raised by assessee is allowed. Disallowance made on account of car maintenance as well as depreciation on car – Held that:- Held that:- there is no infirmity in the orders of revenue authorities in disallowing the same as car was not used for the purpose of business - expenditure not incurred wholly and exclusively for the business of the assessee is disallowed - ground raised by assessee is dismissed. Disallowance of addition on account of advertisement expenses – Held that:- Assessee is not able to substantiate the said expenditure by producing the evidence either before the AO or before CIT(A) or even before this Tribunal - No infirmity in the orders of the revenue authorities – ground raised by assessee is dismissed. Disallowance made u/s 40A(3) of the IT Act – Held that:- No disallowance u/s 40A(3) is required on account of meat, chicken and egg purchases in cash in excess of Rs. 20,000/- as they are daily expenses. However, the rent is not exempted under this rule - disallowance on account of the rent made in excess of Rs.20,000/- on particular dates as recorded in the assessment order is confirmed - ground raised by assessee is allowed in part. Disallowance from Bazar purchase Rs.55,246/- was not taken in original grounds of appeal, although it was the day to day business expenses and so never disallowed in any earlier assessment - Additional ground is dismissed since it is not arising out of the impugned order - In the result the appeal of assessee is allowed in part.
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