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2020 (10) TMI 83 - AT - Income TaxAdhoc disallowance of expenses - disallowing of car expenses as appellant is not in a position to substantiate the claim of vehicle used exclusively for purpose of business as no log book is maintained - addition based on survey proceedings conducted - HELD THAT:- Acts as emerging during survey proceedings including sworn statements made by assessee therein, personal element in usage of Motor Cars could not be ruled out. No disallowance was offered by the assessee in respect of the same while filing the return of income. Similarly, the labor-welfare expenses and conveyance expenses were claimed on the basis of self-made vouchers and the assessee could not produce satisfactory evidences in support of the same. Some adhoc disallowance is justified on the facts and circumstances. Keeping in view the assessee’s turnover, profits reflected during the year, we restrict the Motor Car disallowance to 20% - adhoc disallowance against unverifiable expenses is estimated @5%. The assessee would be entitled for relief of 25% u/s 80-IB against both the items. AO is directed to recompute the income of the assessee in terms of our above adjudication. The appeal stands partly allowed.
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