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2016 (11) TMI 356 - AT - Income TaxDisallowance of CWC-NSEZ expenses and freight and forwarding expenses - Held that:- Commissioner of Income-tax(Appeals), on the other hand, examined the details of the expenses and in respect of first disallowance found that in the preceding assessment year vaulting/warehousing expenses were shown separately, whereas in the year under consideration, the said expenses are clubbed with expenses under the head ‘CWC-NSEZ’ and, therefore, the increase in expenses was found to be justified by the learned Commissioner of Income-tax (Appeals). Similarly, under the head ‘freight and forwarding expenses’, the learned Commissioner of Income-tax (Appeals) has examined expenses in detail and found that the increase was mainly on account of the of octroi paid to Municipal Corporation of Mumbai. We find that the assessee has duly explained the increase in the expenses under both the heads as compared to the preceding assessment year before the learned Commissioner of Income-tax (Appeals). Further, we do not find any strength in the ground of the Revenue that learned Commissioner of Income-tax (Appeals) has not exercised the co-terminus power of the Assessing Officer and did not examine whether the expenses were incurred wholly and exclusively for the purpose of business. In our view, the learned Commissioner of Income-tax (Appeals) has examined the details of the expenses and the increase in expenses has been found by him to be justified. In our considered opinion, no disallowance can be made merely on the estimate or ad-hoc basis, without pointing out any specific defects in the books of accounts or vouchers. - Decided in favour of assessee
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