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2016 (1) TMI 777 - AT - Income TaxAddition of undervaluation of stock - Held that:- Apart from the submission that the quality of oil is substandard, no evidence in its support has been filed by Assessee. Further, Assessee has also not placed any material to support her contention the oil was indeed sold subsequently at the realizable value considered by the Assessee for the purpose of valuation. In such circumstances, we find no reason to interfere with the order of AO - Decided against assessee Disallowance of 50% of sales promotion expenses - Held that:- Assessee's submission that the expenses have been incurred for supplying 1 liter mineral water bottle to the customers who have got their fuel tanks filled for more than ₹ 1,000, almost all the expense has been incurred by account payee cheque and the expenses have not been found to be bogus not supported by any evidence and at the same time, the aforesaid submissions of the Assessee have also not been controverted by Revenue. Further, Revenue has also not placed any evidence on record to demonstrate that the expense is not for business purpose. Considering the fact that the submissions of both the parties are not supported by any evidence, the disallowance being made by A.O on adhoc basis, the passing of a cryptic order of ld. CIT(A), we are of view that in the present case considering the fact that the matter is more than 7 years old and no useful purpose would be served in remanding the matter back. In such a situation, we are of the view that the ends of justice shall be met if the disallowance is restricted to ₹ 25,000/- as against ₹ 2,20,000/- made by A.O. - Decided partly in favour of assessee. Disallowance of tanker and house- keeping expenses - Held that:- Considering the nature of expense and the finding of A.O, we are of the view that ld. CIT(A) was justified in reducing the disallowance to 20% as against 50% made by A.O. We thus find no infirmity in the order of ld. CIT(A). - Decided against assessee.
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