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2016 (1) TMI 491 - AT - Income TaxDisallowance of five different heads of expenditure, i.e., electricity, telephone, mobile, conveyance and miscellaneous expenditure - Held that:- The disallowance made on the ground that there would be possible leakages is not acceptable as such ad hoc disallowance of 25% is not called for. Thus, this disallowance is deleted. - Decided in favour of assessee. Addition made u/s 40A(iii) - assessee had purchased medical instruments worth ₹ 25,000/- in cash - Held that:- As the assessee does not deny the fact of having incurred expenditure for purchases by way of cash above ₹ 20,000/-, in my view, the first appellate authority was right in upholding this disallowance. The findings of the order of the ld.CIT(A) are confirmed.- Decided against assessee. Disallowance of bank interest - Held that:- The disallowance was confirmed by the ld.CIT(A) on the ground that no details and evidence was filed. In my view, the disallowance is not sustainable for the reason that the AO has not made any such allegation. There is no basis for the Revenue to reject this claim of the assessee.- Decided in favour of assessee. Addition towards household expenses - Held that:- The assessee submits that the total household expenses actually incurred and shown are for ₹ 1,68,000/- which is very reasonable. The AO estimated the household expenses at ₹ 2,04,000/- and made an addition of ₹ 36,000/-. Thus in view, such an addition cannot be sustained as it is based on surmises and conjectures.- Decided in favour of assessee.
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