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2020 (2) TMI 1351 - AT - Income TaxDisallowance of wages - Whether adhoc disallowance should be deleted? - CIT (a) restricted the disallowance to 10% of wages expense as against about 20% disallowance made by the AO -HELD THAT:-. Assessee has not furnished any comparison chart of wages expenses percentage in the present year and earlier years. Hence, we decline to interfere in the order of CIT (A) on this issue. Accordingly, Ground No. 3 is rejected. Disallowance of Site Expenses - HELD THAT:- AO should have highlighted some anomalies in the claim. Thereafter he observes that the AO notes in general terms in the remand report that bills/vouchers were not produced in full for verification and still, he partly confirmed the disallowance to the extent of ₹ 1 Lac out of ₹ 5 Lacs disallowed by the AO. In view of these findings of CIT (A) as noted above, we are of the considered opinion that in the facts of the present case, no disallowance is justified and hence, we delete this disallowance. Ground No. 4 is allowed. Disallowance of cost of super structure - HELD THAT:- For a building constructed for letting out, there is no provision in the act to allow the cost of construction as revenue expenditure. Since, major portion of the building in the present case is already let out, this building is a letout building and not business building. Hence, in our considered opinion, this judgment of TVS Lean Logistics Disallowance towards the lease rent - HELD THAT:- As per the computation available additions made on account of lease rent but the same is claimed as deduction while computing income from house property and the AO disallowed so claimed by the assessee and there is no separate disallowance - contention that there is double disallowance is not correct because deduction is very much claimed in the computation available and it is disallowed by the AO by observing that for computing income under the head house property, deduction on account of ground rent is not allowable. We find no infirmity in the order of CIT (A) on this issue. Ground No. 6 is also rejected. Disallowance of claim for amortization of the cost of the letout property - HELD THAT:- Since, no deduction is in fact allowable u/s 23 & 24 of the I T Act about cost of building let out even if constructed on lease hold land and for computing annual rent u/s 22 & 23, what is relevant is the amount of rent received or receivable and there is no scope of any deduction on account of diversion of a portion of income at source, we hold that this claim of the assessee is not allowable. Ground No. 7 Rejected.
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