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2016 (5) TMI 236 - AT - Income TaxDisallowance made under the head 'staff welfare expenses - Held that:- None of these expenses were incurred for personal benefit of the assessee and the authorities below have not brought out any direct evidence that these expenses were incurred for the personal benefits of the assessee. The learned Commissioner of Income-tax (Appeals) in his order has extensively dealt with the case of CIT v. Lakshmi Vilas Bank Ltd. (2014 (4) TMI 827 - MADRAS HIGH COURT ) wherein suggested that the tax authorities to consider the claims and allow expenditure in a businesslike manner considering the ground realities. There should not have tendency of always having some suspicion, doubt and should not draw unreasonable inference based on some unreasonable apprehensions. The hon'ble High Court even observed that if there is some personal expenses incurred for personal use, it is for saving of time. Further, in this case, regular books of account have been maintained and audited under section 44AB of the Act. No adverse inference has been drawn by the auditor. Taking the guidance of various judicial pronouncements, we concur with the findings of higher judicial authority that the tax authorities must consider the claims in reasonable and practical manner. The disallowance of petty nature of expenses makes hardly any impact on overall revenue collection but such disallowance creates a lot of dissatisfaction amongst taxpayers. - Decided in favour of assessee
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