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2019 (8) TMI 148 - ITAT INDOREDisallowance of travelling expenses - CIT(A) has restricted to 10% of such expenditure on the basis that the assessee could not produce supporting vouchers, however the case of the assessee is that he had produced all the vouchers - HELD THAT:- Set of vouchers with supporting bills were submitted before the lower authorities - the entire payment was made through banking channels and the details of Director’s travelling expenses and others were separately furnished before the A.O. It is also stated that sample vouchers referred by the A.O. is not verifiable, in fact, it was the travel advance, which was refunded and hence, the entry was reversed. Considering all we direct the A.O. to restrict disallowance to the extent of 5% to plug the leakage of revenue, if any. This ground of the assessee is partly allowed. Disallowance of building repairs and maintenance expenditure - addition made purely on estimation basis - HELD THAT:- It is stated that complete set of vouchers with supporting bills were submitted before the lower authorities. TDS was also deducted on the contract payments and duly deposited. In respect of disallowance of repairs and maintenance expenditure also, it is stated that the A.O. made disallowance on adhoc basis. In respect of both the disallowances, the revenue authorities have made purely on estimation basis. It is not a case where the assessee has inflated the expenses. Therefore, considering the totality of the fact, we restrict the disallowance to the extent of 5% of the total disallowance made in this regard. Disallowance of gift and presents - it is stated by the assessee that the addition has been made purely on adhoc basis. It is stated that the A.O’s allegation that vouchers were self-made and not reliable is not correct. It is stated that the vouchers specifying the nature and purpose were mentioned in the narration and bills/documentary evidences also. The allegation that expenses incurred for the first time without specifying purpose is not a basis for the purpose of disallowance. After considering rival submissions, looking to the totality of the facts, the disallowance out of the gift and present expenses is restricted to ₹ 50,000/-. Rest of the disallowance is directed to be deleted. Addition in respect of the interest - HELD THAT:- It is stated that under the mistaken belief that the balance as on 31.3.2011 was misunderstood as accrual during the year was only ₹ 94,522/-. Therefore, we direct the A.O. to verify this fact and if found correct delete the addition. This ground of the assessee’s appeal is allowed for statistical purposes.
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