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2016 (4) TMI 630 - AT - Income TaxAddition u/s 40A(3) - Held that:- Since the ld. CIT(A) has not applied his mind to these provisions and has not examined the nature of payment whether it was made on account of business exigencies or under any exceptional clause, we are of the view that let the matter should go back to the ld. CIT(A) for adjudication of the issue in the light of the provisions of section 40A(3A) of the Act. Accordingly, the order of the ld. CIT(A) is set aside and the matter is restored to his file for re-adjudication of the issue. Disallowance u/s 43B as unpaid bonus liability - Held that:- CIT(A) has examined the details of payment and was of the view that there is no unpaid liability before filing the return of income concerning to the assessment year. Since the ld. CIT(A) has properly examined the issue, we find no infirmity in his order and we accordingly confirm the same. Disallowance of payments made invoking the provisions of section 40A(3) - CIT(A) has deleted the addition - Held that:- Assessing Officer has not examined the complete facts of the case whereas the ld. CIT(A) has appreciated the explanations furnished by the assessee. Since the assessee was simply a facilitator for the purchase of medicines from M/s Agrima Medicos for the patients and the payments were made by the patients, the disallowance, if any, can only be made in the hands of the patients, if the payments exceed the limit, but not in the hands of the assessee. Since the ld. CIT(A) has properly examined the issue in the light of the detailed submissions of the assessee, we find no infirmity in his order on this issue and we accordingly confirm the same. Disallowance of 1/5th of salary and wages debited the profit and loss account - Held that:- Assessing Officer has made ad hoc disallowance of 1/5th of total claim without pointing out any specific defect in a particular payment or in the cash book. The ld. CIT(A) has re-examined the details furnished by the assessee and he deleted the addition. He, however, has confirmed the addition of ₹ 2 lakhs on account of certain expenditures, which were not proved to have been incurred for business purposes. Since no specific infirmity has been pointed out in the order of the ld. CIT(A), we confirm his order.
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