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2016 (2) TMI 121 - AT - Income TaxAddition u/s 69A representing realization of assets inherited from mother pursuant to her 'WILL" - Held that:- The said WILL is a valid WILL and the same regulated the succession as declared by the testator, i.e. the mother of the assessee. In respect of page no.16, where the Profit & Loss account belonging to the mother of the assessee is produced, wherein it shows that she has invested in shares, particularly, in MKJ Development Ltd., Starlight Credit (I) Ltd. and Kherapati Vanijya Ltd. which altogether come to ₹ 4,28,795/-. Therefore, in our view, the amount to an extent of ₹ 4,28,795/- is validly proved to have been invested by the assessee in his business concern from his personal account which is the sale proceeds of such shares which he got from WILL. Therefore, the nature and source of the fund was received from the mother of the assessee is proved. As regards the balance sum of ₹ 16,000/- (Rs.4,44,795/- - ₹ 4,28,795/-), no arguments were advanced by the assessee before us. Hence, we dismiss the claim of the assessee in this regard. - Decided partly in favour of assessee Ad hoc disallowance @ 20% out of car expenses, depreciation on car and telephone expenses treating the expenses incurred for personal use - Held that:- On mere presumption the AO just made the additions on ad hoc basis without any basis. The AO himself opined that the expenses of personal use could not be ascertained in the absence of log book. The ld. CIT(A) himself has admitted that the AO has not identified any specific item of personal expenses. The ld. CIT(A), without going into the details of the expenses and the basis of disallowance, restricted to 10% of the expenses on ad hoc basis. Ad hoc disallowance is always made without having any concrete evidence that the assessee has incurred the expenses for personal use. We, therefore, find no reason to disallow the above expenses incurred by the assessee - Decided in favour of assessee
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