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2016 (8) TMI 607 - AT - Income TaxDisallowance of expenses incurred under the head ‘subscription & donation’- Held that:- Disallowance was made by the Authorities Below due to non-production of evidence in support the expenditure claimed. The ld. AR has also not brought anything even before us in support of the aforesaid expenditure. Considering the facts and circumstances of the case, we find no reason to interfere in the order of Ld .CIT(A). - Decided against assessee Disallowance on account of carriage outward - Held that:- In the absence of supporting vouchers, we need to look other factors before making any disallowance like nature of business, history of the expense claimed in earlier years, audited financial year statement etc. In the instant case, assessee has produced all the documentary evidence in support of its expenditure except the aforesaid amount of ₹1,80,719/- which is just 1.18% of the total turnover of assessee business. At the same time, we cannot ignore that similar expenses were claimed in the earlier AY and this year, the expense claimed by assessee are in commensuration with earlier year expense. We find force in the argument raised by L’d AR that there was a slightly increase in the aforesaid expense and that too mainly increase in the fuel cost and other escalated cost. However, it is also important to note that the documentary evidence was not placed before the lower authorities. Now, in the interest of natural justice and fair play, we after considering the totality of the facts of the case as discussed above, not interested in sending back the matter to the AO to avoid further litigation. Therefore, in the interest of justice and fair play, we restrict the disallowance to the extent of ₹50,000/- for the year under consideration, as all the vouchers were not produced for verification during the appellate proceedings.Ground No. 2 is decided in favour of assessee in part. Addition made under head “Home Biri Labour” expenses - Held that:- There were many factors which have been ignored by L’d CIT(A) before enhancing the total income of assessee by disallowing the aforesaid expenses. We also further find that this expense has been claimed by assessee consistently for the last several years and no such disallowance was made by the Authorities Below. Considering the totality of the facts and circumstances, we are inclined to reverse the orders of Authorities Below. AO is directed accordingly. - Decided in favour of assessee
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