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2023 (10) TMI 1241 - ITAT DELHIDisallowance under the head of salary and wages claimed - AO found that the assessee is paying almost 24% of gross receipt on salary and wages - HELD THAT:- The assessee has not produced books of account and other supporting evidence before the AO or CIT(A) to substantiate the expenses claimed under the head of salary and wages. It is the duty of the assessee to produce his books of account and supporting evidence before the A.O. to substantiate the claim of the returned income, it is for the assessee to produce cogent evidence in support of low profit shown in the return of income, failing which the A.O. is the duty bound to make the disallowance. CIT(A) by taking into consideration that the net profit of the Assessee’s business after deducting the interest on FDR which is at 15.55% on the gross receipt which is held to be excessive, therefore, rightly restricted the disallowance made by the A.O. under the head of salary from 25,28,872/- to 12,00,000/- and disallowance made under the head of wages of Rs. 22,91,791/- to Rs. 10,00,000/-. Addition on account of low Drawings - Since the assessee received major cash in his business, the A.O. was of the opinion that the assessee used the unaccounted cash for household withdrawal, thus undisclosed household expenses has been added back to the income of the assessee - HELD THAT:- It is found that the Ld. A.O. while making the above disallowance considered the various facts such as cost of school fee/college fee/tuition fee, other study related expenses per child, minimum cost of moderate standard of living in a city life Delhi for a family consist of four members and estimated at Rs. 40,000/- per month which is just in the facts and circumstances of the case, therefore we find no merit in the Ground of the assessee. Deduction u/s 80C - AO made addition as the assessee has not furnished any evidence - HELD THAT:- Considering the fact that the assessee had claimed the deduction u/s 80C but not produced any iota of document to substantiate his claim, the A.O. rightly made the addition which has been confirmed by the CIT(A), thus we find no merit in Ground of the assessee. Disallowing at 20% under the head of salary, daily allowance and festival expenses and disallowance of 10% of other expenses under the head of telephone, vehicle, general, travelling, business, promotion, staff labor cost of uniform - HELD THAT:- Though the assessee claimed that the above expenses have been incurred for the purpose of business, but could not produce the books of accounts and supporting bills and vouchers, therefore, 40% of the above expenses has been added to the income of the assessee due to non verification of expenses. In the Appeal before the CIT(A), the expenses deducted under the daily allowances, festival celebration expenses and establishment expenses have been confirmed to the extent of 20% and further the remaining expenses under the head of telephone expenses, vehicle running and maintenance, general expenses, travelling and conveyance expenses, business promotion, staff and Labour welfare and cost uniform expenses have been restricted at 10% of the expenses. In our considered opinion, the said action of the CIT(A) is reasonable and the same is neither excessive nor erroneous considering the turnover of the assessee. Appeal filed by the Assessee is dismissed.
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