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2018 (10) TMI 1103 - AT - Income TaxDisallowance of expense of insurance policy - as contended that it is the consistent policy of the assessee to claim the insurance premium in the year of incurrence and this is not the first year of operation of the assessee - Held that:- Where the factum of insurance premium being actually paid and the incurrence of expenditure for the purposes of business has not been disputed by the Revenue and the assessee has been consistently claiming the same in the year of incurrence and/or has been allowed by the Revenue in the past, and given by the nature of expenditure of insurance premium in the overall context of the business of the assessee being in the business of dairy marketing, which undisputedly is not going to distort the determination of true profit/loss, such consistent claim of expenditure should not be disturbed. Where this is the first year of claim of such an expenditure and in which case, the principle of consistency will not apply and infact, the stand taken for the year will set the precedent for the subsequent years. We therefore, set aside the matter to the file of the Assessing Officer for the limited purpose of verifying as to whether the assessee have been claiming similar expenditure towards insurance premium in the past in the year of incurrence and where the same is found to be correct, the AO is directed to allow the same following the principle of consistency. - Decided in favour of assessee for statistical purposes. Addition of maintenance expenses is purely an adhoc disallowance which cannot be sustained in the eyes of law and the same is hereby deleted and the ground so raised by the assessee is allowed.
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