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2017 (1) TMI 983 - AT - Income TaxDisallowance of interest - Held that:- Considering the peculiarity of the facts of the present case when the assessee has sufficient surplus fund available with them at their disposal to lend to its sister concern at lower rate of interest compared to the other non-related parties no disallowance was warranted. Hence, we do not find any infirmity or illegality in the order passed by Commissioner (Appeals)in deleting addition which require our interference - Decided in favour of assessee Disallowance of bogus purchases @ 23% of the total purchases - Held that:- Considering the facts that the genuineness of the purchases made by the assessee was not doubted by ld Commissioner (Appeals) the disallowance restricted @23% to our opinion is at higher side. Thus as per our considered opinion the disallowance @ 15% of total impugned purchases would be sufficient to meet the end of Justice. We accordingly direct the AO to calculate the disallowance is of impugned bogus purchases @15% of total cost of impugned purchases. With this observation the appeal of the assessee is partly allowed.
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