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2014 (2) TMI 231 - AT - Income TaxDisallowance of various expenses – Held that:- The decision in JM. Baxi & Co. Versus The Dy Commr of Income Tax[2014 (1) TMI 1259 - ITAT MUMBAI] followed - the disallowance was restricted to 50% - it is a question of making estimate for disallowing the expenditure for non-business purposes or unsupported by the evidences – it would be adequate if the total disallowance sustained by the learned CIT(A) towards these expenses is restricted to 50% - thus, The disallowance being restricted to 50% of the disallowance in respect of all the expenditure – Decided partly in favour of Assessee. Disallowance made u/s 37(1) of the Act – Fees or services charged from clients – Held that:- The decision in JM. Baxi & Co. Versus Dy. Commissioner of IT., Mumbai [2014 (1) TMI 1258 - ITAT MUMBAI] followed - After the lapse of almost 12 years no useful purpose would be served if the matter is restored back to the file of the A.O, to make fresh enquiries whether the clients of The assessee were aware that they were required to reimburse the illegal expenses - it is clear that after assesse filed its reply neither the assessee nor the AO made any effort to prove that such expenditure was illegal and was being reimbursed by such clients/principals – Advocate agreed that he will have no objection if sundry expenses are disallowed to the extent of 25% of the expenses – thus, the order of the CIT(A) and the AO is directed to make the disallowance of 25% of the sundry expenses – Decided partly in favour of Assessee.
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