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2022 (1) TMI 643 - AT - Income TaxAdhoc disallowance of travelling and conveyance; and miscellaneous expenses - HELD THAT:- For booking of the tickets the relevant evidences have also been filed which were there before the AO and the ld. CIT (Appeals). These expenses were claimed for specific business purposes wherein the assessee had made investment in Great Eastern Energy Corporation Ltd. to off-load the assessee’s investment. The observations and the findings of AO while making the disallowance, is purely based on surmises. If the assessee has stated that it had undertaken travelling for getting consultations with solicitors for litigation connected with the business of the assessee and has produced the booking of tickets and other details to substantiate, we do not find why ad-hoc disallowance should have been made. Similarly with regard to miscellaneous expenses also, as noted above, these are petty expenses and mostly relating to telephone expenses, advertisement expenses etc. Such expenses could not be disallowed on ad-hoc basis especially in the case of a corporate entity. The adhoc disallowance made by the Assessing Officer and the ld. CIT (Appeals) are deleted. - Decided in favour of assessee.
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