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2016 (1) TMI 485 - AT - Income TaxDisallowance of transportation charges - transportation charges are not open for verification - CIT(A) made disallowance of the entire payment having invoked the provisions of section 40(a)(ia) - Held that:- From a careful perusal of the order of the ld. CIT(A), we do not find any narration with regard to the issuance of notice for enhancement of disallowance. Since the disallowance resulted into enhancement of income, the ld. CIT(A) was required to issue notice of enhancement before enhancing the disallowance from ₹ 2 lakhs to ₹ 48.26 lakhs. Therefore, enhancement made by the ld. CIT(A) suffers from irregularity, for which the order of the ld. CIT(A) deserves to be set aside and we accordingly set aside the order of the ld. CIT(A) and restore the matter to his file with a direction to issue notice of enhancement of disallowance to the assessee and thereafter readjudicate the issue after affording an opportunity of being heard to the assessee. Disallowance of vehicle running expenses - Held that:- The vehicle running expenses were incurred for the business purposes of the assessee-company, therefore, no ad hoc disallowance can be made. Since the assessee is a partnership firm, the element of personal use of vehicle cannot be ruled out. We are, however, of the view that the disallowance of expenditure of ₹ 20,000/- is on higher side. We accordingly reduce the same to ₹ 10,000/-. Addition under the head “repair and maintenance and bills and vouchers for the same were self-made and unverifiable in nature - Held that:- Assessing Officer has specifically pointed out that the bills and vouchers for repair and maintenance are self-made vouchers and are unverifiable in nature. Before the ld. CIT(A), the assessee has not placed any evidence to prove the genuineness of the claim. Even before us, no sample voucher is filed, wherefrom mode of preparation of voucher can be evaluated. Since the assessee has made a particular claim of expenditure, onus is upon the assessee to prove its genuineness. Self-made vouchers for entire expenses will not serve the purpose. We are accordingly of the view that the Revenue has rightly made the disallowance having concluded that the bills and vouchers maintained for repair and maintenance expenses are not open for verification. Accordingly we confirm the order of the ld. CIT(A). Nature of sale of land - computation of capital gain - agricultural land - Held that:- Once the land is situated within 8KM of the municipal limit, the land certainly falls within the category of capital asset and capital gain is to be worked out. Since the assessee has raised a claim that it is an agricultural land and does not falls within the definition of capital asset, the onus is upon it to place the relevant evidence by obtaining a certificate from the concerned authority, but the assessee has simply filed an affidavit along with notification of the boundaries of Kanpur city wherefrom the location of the land cannot be verified. We are accordingly of the view that the ld. CIT(A) has rightly disallowed the claim of the assessee in the given facts and circumstances. Accordingly we confirm his order on this issue.
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