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2016 (12) TMI 180 - AT - Income TaxDisallowance of brokerage amount paid - Held that:- AO has not brought any evidence on record either to prove that the transaction is a colourable device to disallow the same or the brokerage paid by the assessee in the present case is excessive or unreasonable to apply the provisions of section 40(A)(2) of the Act. Similarly, the Ld. CIT(A) has not recorded the reasons for holding that the object behind making payment of the amount in question was tax avoidance through a colorable device. The finding of the Assessing Officer as well as the Ld. CIT(A) are, therefore, not based on any evidence. Since, the Ld. CIT(A) has not referred any evidence to justify the disallowance made by the AO or to enhance the same, it can safely be presumed that the payment in question has been made by the assessee as brokerage. The impugned order is therefore not sustainable in the eyes of law. Accordingly, we set aside the findings of the Ld. CIT(A) - Decided in favour of assessee. Disallowance of repairs and maintenance expenses - Held that:- We notice that the AO has disallowed 20% of expenses for want of evidence, however, the Ld. CIT(A) has taken altogether new ground and taken the view that the expenditure other than the society charges aforesaid, are capital in nature. We also notice that the CIT(A) did not seek any explanation from the assessee before arriving at such a conclusion. Accordingly, we are of the view that this issue requires fresh examination at the end of the Ld. CIT(A). We, therefore, restore this issue to the file of the Ld. CIT(A) with the direction to adjudicate this issue afresh after affording a reasonable opportunity to the assessee to explain the same.
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