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2013 (5) TMI 643 - AT - Income TaxSociety charges on premises at Mehta Mahal given on leave and license to a third party - whether allowable as a deduction while computing the income in respect of said premises - Held that:- As decided in assessee own case [2012 (7) TMI 237 - ITAT MUMBAI] wherein such charges are not allowable as a deduction while computing the income in respect of said premises. Against assessee. Generator running expenses disallowed - Held that:- Finding substance in the order of CIT(A) that the purchase of diesel from Mulund in Mumbai, particularly when the generator is installed in the godown at Bhiwandi, raises suspicion as regards genuineness of the claim of the assessee and when the most of the payments have been made in cash in respect of bills of more than Rs.20,000/-. Assessee has not been able to place on record anything to substantiate consumption of 300% more diesel in assessment year under consideration as compared to earlier year particularly when there is no addition of new generator or increase in capacity of generator in the assessment year under consideration. Thus considering the claim of the assessee in the preceding assessment year of diesel was Rs.8,29,081/-, as compared to Rs.23,04,215/-, in assessment year under consideration and even after considering increase in diesel price and also presuming that there was more use of generator it cannot exceed 300%. As assessee on its own has made disallowance of Rs.4,39,595/- out of its claim, it is fair and reasonable to restrict the disallowance to Rs.8 lakhs over and above the disallowance made by the assessee at Rs.4,39,595/-. Partly in favour of assessee. Conveyance, order booking, repairs and maintenance, staff welfare expenses and administrative charges - adhoc disallowance to the extent of 5% of expenses - Held that:- Disallowance made by CIT(A) @ 5% of the claim of assessee on account of personal expenses and leakage have been made on the basis of self made vouchers, and, therefore, same could not be verified, is reasonable and no interference is called for. Against assessee. Disallowance u/s 14A r.w. Rule 8D - Held that:- Restore this additional ground to CIT(A) with a direction to decide the same afresh by a reasoned order after giving due opportunity to the parties. In favour of assessee for statistical purposes.
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