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2015 (1) TMI 556 - AT - Income TaxDisallowance and addition during the assessment or reassessment proceedings u/s 153A - Genuineness of the expenses - CIT(A) deleted the addition of ₹ 10,00,000/- out of the total expenses claimed of ₹ 5.25 crores - Held that:- Assessing Officer made impugned disallowance and addition out of total expenses claimed by the assessee without any incriminating material said to be found during the course of search and on the estimate and ad hoc basis. On the other hand, the Commissioner of Income Tax(A) deleted the addition with an observation that when the Assessing Officer himself has failed to invoke the relevant provisions of the Act to ensure compliance of the directions by the assessee, it may not be a strong basis to make a random estimated disallowance out of expenses debited to the P&L account. The Commissioner of Income Tax(A) was also justified in holding that no defect or even doubt has been pointed out by the Assessing Officer with regard to any particular expense to which disallowance could have been pegged and under these circumstances, ad hoc disallowance being without any basis is not sustainable. Under these facts and circumstances and on the basis of foregoing discussion, we are of the firm opinion that the Assessing Officer made disallowance and addition during the reassessment proceedings u/s 153A of the Act without any basis and justified cogent reason. On the other hand, the Commissioner of Income Tax(A) rightly deleted the disallowance and addition as per letter and spirit of the relevant provisions of the Act.- Decided against revenue.
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