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2016 (1) TMI 710 - AT - Income TaxDisallowance of outstanding liability - Held that:- the assessee has not able to file confirmation letters from the 24 trade creditors. Since the trade liability was not proved by filing the confirmation letters from the trade creditors, we find that the Assessing Officer has judiciously disallowed the above amount and the ld. CIT(A) has rightly confirmed the above disallowance. Therefore, we find no infirmity in the order passed by the ld. CIT(A) on this issue. - Decided against assessee Disallowance towards expenditure incurred in respect of paddy and lorry hiring business - Held that:- The basis for estimating the disallowance was not mentioned in the assessment order. Further, it is not disputed that such expenses are not at all incurred by the assessee. Incurring expenses in running the lorries such as sundry repairs and other recurring expenses are very common. Since the Assessing Officer has partially accepted the expenses incurred by the assessee and made disallowance, considering the nature of the business, we are of the firm view that the Assessing Officer was not justified in making disallowance on estimated basis in the present case. Accordingly, the disallowance made by the Assessing Officer is deleted. - Decided against revenue Disallowance towards advertisement and payment for festivals, etc. - Held that:- As in the absence of original cash bills and the assessee has produced self made vouchers, after considering nature of the claim, the Assessing Officer has fairly estimated and disallowed only 20% of the total claim - Decided against assessee
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