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2019 (5) TMI 1304 - ITAT AHMEDABADDisallowance of commission expenses - HELD THAT:- We find force in the contention AR for the assessee that the turnover of the assessee was quite huge amounting to ₹ 24,31,54,719/- which is not possible without the involvement of the commission agents in this kind of trade. The learned DR has not brought anything on record against the contention of the assessee. We also disagree with the contention of the DR to refer the matter to the AO for conducting the necessary inquiries from the commission agents. It is because the AO had sufficient details in its possession during the assessment proceedings. Therefore, we are reluctant to provide further opportunity to the Revenue for making the fresh inquiries on the same set of documents. We are not impressed with the finding of lower authorities. Therefore, we reverse the order of the authorities below - delete the addition made by him. Hence, the ground of appeal of the assessee is allowed. Addition on account of capital contribution - HELD THAT:- In the instant case, the assessee failed to furnish the supporting evidence for the capital contribution of ₹ 90,000 only. Indeed there was a credit amount reflected in the bank statement of the assessee amounting to ₹ 90,000/- but the onus is on the assessee to substantiate the same as a gift received from his brother on the basis of documentary evidence. AR before us has also not provided any details to adjust the same with the telescoping benefit. Thus in the absence of any documentary evidence, we are not inclined to disturb the finding of the authorities below. Hence the ground of appeal of the assessee is dismissed. Disallowance of depreciation - asset put to use - assets which are ready to use but were not put to use because their use depends upon the operation of other machinery which were not actually ready to use before 30th September - HELD THAT:- In this regard, we note that the use of the plant and machinery depended upon the operation of the furnace which was not put to use before 30th September 2010. No ambiguity that the plant & machinery were not put to use before 30th September. Accordingly, we hold that the assessee was entitled to depreciation at the rate of 50%. Thus we do not find any infirmity in the order of authorities below. Hence the ground of appeal of the assessee is dismissed. Ad-hock disallowance @20% of telephone and administrative expenses - HELD THAT:- The learned counsel for the assessee has also not produced any documentary evidence to justify that there was no personal element in the aforesaid expenses. However, in our considered view the AO before making the disallowance of the expenses on an ad-hoc basis should have referred the claim made by the assessee in the earlier years as well as in the subsequent years which he failed to do. However, we are of the view that the disallowance at the rate of 20% is slightly on the higher side. Therefore, in the interest of justice and fair play we restrict the disallowance to the extent of 10% of the total expenses.
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