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2019 (4) TMI 1989 - AT - Income TaxDisallowance of certain expenses on ad hoc basis - non rejection of books of account - HELD THAT:- The assessment was completed u/s 143(3) - AO nowhere has rejected the books of account. He simply held that most of the payments were in cash and assessee had submitted self-made vouchers therefore, he disallowed certain amounts out of the total expenditure. The Assessing Officer has not pointed out any vouchers or expenditure on which he had any doubt. The ad hoc disallowance, without pin pointing any error in the books of account, is not justified - Thus the issue of disallowance on ad hoc basis out of expenses is decided in favour of the assessee. Deduction u/s 35AC - AO disallowed the claim of the assessee by holding that the assessee had debited the amount under the head charity and donation and had not claimed any deduction u/s 80G - HELD THAT:- The assessee had filed certified copies of receipt certified by the Assessing Officer. Similarly, the assessee had filed copy of Form-58A certified by the Assessing Officer which is in the prescribed form declaring therein the amount of total donation received including receipt from the assessee. We further find that vide Notification No. S.O. 1649(E), dated 12th July, 2010, the institution to whom donation was made was approved by National Committee for deduction u/s 35AC. The certification by the Assessing Officer of these documents clearly demonstrates that these documents were filed before the Assessing Officer. As regards the observation of learned CIT(A) that these evidences were not enclosed along with the return of income, we find that Rule 12(2) of I.T. Rules, prohibited the assessee to file any report or receipt under any provision of the Act along with the return of income - Decided in favour of assessee.
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