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2016 (1) TMI 536 - AT - Income TaxAddition undisclosed receipts - CIT(A) deleted the addition - Held that:- The amounts in question have already been shown and included in the gross receipts of the assessee in the earlier assessment year and in the absence of any thing contrary being brought to our notice by the learned DR , We are of the view that the addition made by the AO was rightly deleted by CIT(A). - Decided in favour of assessee Disallowance u/s 40(a)(ia) - CIT(A) deleted the addition - Held that:- We have perused the relevant part of the remand report of the AO as extracted in the order of CIT(A) and find that no specific objections was pointed out before CIT(A) by the AO in the remand report except contending that no evidence of payment of TDS was filed by the assessee. In fact the specific contention of the assessee was that TDS was not applicable on a sum of ₹ 55,000/- as it was office maintenance charges not in the nature of rent covered u/s 1941 of the Act. The AO has not raised any objections on this contention in the remand report. Consequently ground no.2 raised by the revenue is dismissed. - Decided in favour of assessee Disallowance of non- essential expenses made on the grounds of failure to produce any evidence - CIT(A) deleted the addition - Held that:- The basis on which AO made the impugned disallowance cannot be sustained and was rightly deleted by CIT(A). The law is well settled that it is for the assessee to decide what expenses are necessary for the purpose of business. AO cannot sit in judgments on what these expenses are essential or not essential for the purpose of business. - Decided in favour of assessee
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