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2019 (10) TMI 911 - AT - Income TaxDisallowance under the head ‘expenses’ - addition to 10% of the total expenses and restricted the depreciation to 1/5th of the total depreciation on the addition of fixed assets added during the year under consideration by CIT-A - AO made ad-hoc disallowance on the reasoning that books of accounts and bills and voucher in respect of the other expenses as well as addition to the assets were not produced before him - HELD THAT:- CIT(A) noticed that the assessee has not filed detail of expenses before the Assessing Officer, still he restricted the disallowance for other expenses to 10% of the total expenses without any justification and only on the basis of the magnitude of the disallowance. The learned CIT(A) should have examined the books of accounts along with bills and vouchers to decide the issue of disallowance of other expenses and depreciation. The action of the learned CIT(A) of sustaining the disallowance on ad-hoc basis is not justified. In the facts and circumstances of the case, we feel it appropriate to restore the matter back to the file of the Assessing Officer for deciding afresh with the direction to the assessee to produce all the necessary documents in support of its claim including books of accounts and bills and voucher in relation to other expenses and additions to assets for justifying the claim of the depreciation. It is needless to mention that the assessee shall be afforded adequate opportunity of being heard. Accordingly, the grounds raised by both the parties are allowed for statistical purposes.
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