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2019 (4) TMI 1892 - AT - Income TaxBogus expenses - AO issued notices u/s 133(6) to various parties for the purpose of verification of business transactions of the assessee which could not be served to the parties - HELD THAT:- A.O. is not justified in making the impugned disallowance claimed under the head “Repairs of plant & machinery” and power & fuel treating the same as bogus merely on the ground that the notices u/s 133(6) returned back unserved giving rise the character of the transactions as the bogus liability. That being so, we decline to interfere with the order of Id. C.I T.(A) in deleting the aforesaid additions. Non-deduction of TDS on brokerage and commission - HELD THAT:- CIT(A) has already adjudicated this ground against the assessee and in favour of the revenue, therefore the ground raised by the revenue becomes infructuous and hence we dismiss the same. Disallowance of expenses on account of Travel expenses, Staff Welfare expenses, Repairs, others and Sales promotion - HELD THAT:- We note that assessee has paid FBT on these expenses. For this reason also, the AO was not justified in disallowing the expense. We note that having gone through the order of the ld. CIT(A), we do not find any infirmity in the order passed by the ld. CIT(A), therefore we uphold the order of the ld. CIT(A) and dismiss the grounds of appeal raised by the revenue. Disallowance on account of interest paid which were not utilized for the purpose of business - HELD THAT:- Interest was paid on loan taken for purchase of vehicle hence the interest payment is an allowable expense. So far as interest paid on packing credit loan and interest paid on over draft and cash paid accounts, we are of the view that the interest on amount which is used for the purpose of giving interest free loan to sister concern can at most be disallowed. As per the working given by the Counsel, the assessee has paid interest on the amount utilized for the purpose of giving interest free loan to sister concern. Hence, at the most interest to the tune can be disallowed. Since, the working given by the Counsel requires verification, hence the A.O. is directed to verify this working given by the ld Counsel in his submission. Appeal of the Revenue is dismissed.
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