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2019 (10) TMI 1073 - AT - Income TaxDisallowance of development expenditure towards road construction etc. - development expenditure was due but paid in next year - AO conducted the enquiry from these parties by calling the information under section 133(6) - HELD THAT:- When the assessee has produced all the documentary evidences to establish the carrying out the development work and the claim of expenditure is not found to be excessive in consonance with the development work actually done at site, then the disallowance is uncalled for and the same is deleted. Disallowance of 50% development expenses on account of contract work given - ocumentary evidence was not accepted by the ld. CIT (A) on the ground that break up of various items is not given in these quotations and estimations - 50% of the claim is disallowed due to some irregularities in the documents produced by the assessee - HELD THAT:- When the work is actually carried out at the site and it is also certified by the JVVNL, then even if there are some irregularities in the bills and vouchers produced by the assessee in not giving the break-up of the items, the claim of the assessee cannot be disallowed. Only in case if it is found that the assessee either made a bogus claim or inflated the expenditure then to the extent of such bogus or inflated claim can be disallowed. Once the claim of expenditure is not found to be excessive or inflated then having regard to the fact that the actual work has been carried out at the site, the claim cannot be disallowed on minor irregularities or defects in the bills/invoices produced by the assessee. Hence the disallowance made by the authorities below is deleted.
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