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2016 (5) TMI 1105 - AT - Income TaxDisallowance of lorry operational expenses - Held that:- There was no scope for making adhoc disallowance. The learned CIT(A) observed that from the perusal of the balance sheet of the assessee from A.Yrs. 2006-07, 2007- 08 and 2008-09 the total lorry expenses was 80%, 81% and 83% respectively of lorry income. The learned CIT(A) also observed that the AO had not brought any comparable cases in the same line of business to justify his estimated disallowance of 20%. However, the learned CIT(A) found that in the absence of evidence produced in and in the absence of supporting bills and vouchers produced by the assessee before the learned AO, the learned AO had no option but to resort to some estimation and hence going by the past history of the assessee he found that the disallowance of ₹ 2,50,000/- would meet the ends of justice and accordingly granted relief for the balance sum of ₹ 36,39,499/-. - Decided against revenue Disallowance u/s 40(a)(ia) - finance charges paid to Tata Finance Limited - Held that:- The payments of hire charges to Tata Finance Limited under the hire purchase does not come within the ambit of commission or brokerage. Hence we hold that the provision of section 194H would not be applicable. With regard to the applicability of the provisions of section 194A of the Act the reliance placed by the assessee on the CBDT Instruction No.1425 F.No.275/9/80 IT (B) dated 16-11-81 is well founded - Decided against revenue
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