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2020 (2) TMI 544 - AT - Income TaxDisallowance on account of salary expenditure - failure of the assessee to furnish the relevant details and documents - addition sustained by the ld. CIT(Appeals) to the extent of 90% - HELD THAT:- In view the factum and quantum of these investment activities carried on by the assessee-company during the year under consideration, which is duly taken note of by the Assessing Officer in paragraph no. 2.1 of the assessment order and having regard to the fact that the status of the assessee being a Company, which is required to comply with the statutory requirement, we are of the view that the disallowance of 90% of the expenditure claimed by the assessee on account of salary and bonus as sustained by the ld. CIT(Appeals) is highly excessive and unreasonable. According to us, it would be fair and reasonable in the facts and circumstances of the case to restrict the disallowance made by the Assessing Officer on account of salary and bonus to 50%. We accordingly modify the impugned order of the ld. CIT(Appeals) on this issue and restrict the disallowance made by the Assessing Officer on account of salary and bonus to 50%. - Appeal of the assessee is partly allowed.
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