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2015 (10) TMI 310 - AT - Income TaxDisallowance of denting & painting and job charges expenditure - Held that:- In the present case, it is noticed that the assessee explained the reason for increasing the expenses which was mainly due to warranty scheme and no recovery was made in those case where warranty period was inexistence. The Assessing Officer did not point out any item of expenses which was not incurred for the business purposes. Therefore, the disallowance made by the Assessing Officer and sustained by the Ld. CIT(A) was not justified. Accordingly, the same is deleted. - Decided in favour of assessee. Addition @ 15% out of claim of rebate & discount expenses and various expenses debited in the P & L account - AO was of the view that the discount and rebate allowed to the customers was through self made vouchers instead of sales bills issued to the customers - Held that:- In the instant case, it is noticed that the Assessing Officer did not point out any defect in the books of accounts which were duly audited. He also did not point out any specific items of expenses which was not incurred for the business purposes. In our opinion, the Assessing Officer failed to appreciate the facts in right perspective even he did not consider this explanation of the assessee that sales bills for vehicles and spare parts were issued online through accounting software, the bills were issued on Maximum Retail Price (MRP) and the discount was given through self made vouchers because there was no such software in the accounting system for giving discount. The Assessing Officer made the adhoc disallowance without any basis and the Ld. CIT(A) also restricted the same in slip shod manner without giving any cogent reason and the basis. We therefore, considering the totality of the facts of the present case, are of the view that the disallowance sustained by the Ld. CIT(A) was not justified. Accordingly, same is deleted.- Decided in favour of assessee.
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