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2022 (1) TMI 334 - AT - Income TaxDisallowance of expenses shown as payable in the balance sheet - assessee has shown statutory liabilities on account of TDS payable, on account of EPF contribution and on account of Profession Tax - HELD THAT:- The AO is directed to allow the payment in the year in which the payments have actual been made after due verification. The assessee is directed to furnish necessary evidences in support of its claim. Remuneration to partners which included bonus - AO was of the opinion that the deed neither quantifies the amount of bonus nor does it explain how to decide on the quantum of bonus - HELD THAT:- There is no dispute that there is a specific provision in the partnership deed in respect of payment of remuneration to partners. It is also not in dispute that bonus paid to partners is part of the remuneration. This means that the total allowance of the remuneration to partners has to be judged in the light of the provisions contained section 40(b) of the Act. The AO is directed to verify whether the overall remuneration including bonus is within the permissible limit of the relevant provisions of section 40 (b) of the Act and if found so the same should be allowed. Disallowance of Vehicle Expenses, Depreciation on Car,Telephone Expenses, Depreciation on Telephone, Travelling Expenses andConveyance Expenses - HELD THAT:- Disallowances have been made on ad-hoc basis without pointing out any specific defect in the accounts. However, personal usage of vehicle/ telephone cannot be ruled out. We find that the CIT(A) has restricted disallowance to 5% on account of vehicle expenses and depreciation on car and has further restricted the disallowance on account of mobile phone expenses only to the personal usage of four persons, we do not find any error or infirmity in the findings of the CIT(A). Thus ground accordingly dismissed.
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