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2018 (9) TMI 1317 - AT - Income TaxAd-hoc disallowance at 10% on account of personal use - Held that:- The present assessee before us is a company and is an entity recognised by law, as a legal person, that exist in eyes of law independently with rights and liabilities. Thus no element of personal expenses by the Directors/Office bearers can be attributed, without, there being sufficient evidence in support. Admittedly, Ld.AO neither pointed out any instance of inflation in expenditure claimed by assessee, nor has given any finding regarding expenditure claimed by assessee being capital in nature, for purposes of disallowance. It is further observed that CIT(A) made general observation for sustaining addition made by Ld.AO. It is observed from assessment order that assessee filed books of accounts, vouchers and bank statements before Ld.AO. If Ld.AO was not satisfied with details filed by assessee, he could have pointed out at assessment stage itself. - Decided in favor of assessee. Disallowance computed by Ld.AO under section 14A read with Rule 8D - Held that:- Admittedly assessee has not earned any exempt income during relevant assessment year under consideration. See case of Cheminvest Limited [2015 (9) TMI 238 - DELHI HIGH COURT]. - Decided in favor of assessee.
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