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2017 (5) TMI 634 - ITAT RAIPURDisallowance of interest paid to NBFCs and finance charges as per provision of section 40(a)(ia) - Held that:- In the light of order in the case of R.K.P. Company (2016 (7) TMI 447 - ITAT RAIPUR) wherein held that in the case of non deduction of tax, it is proper to remit the matter to the file of AO for limited verification as to whether recipient of payment has included the same in his computation of business income offered to tax, we restore this issue back to the file of the Assessing Officer with a limited direction to examine whether the payee ‘NBFCs’ have included the interest paid by the assessee in its return of income and paid the tax on the same. The assessee is at liberty to submit certificate in Form No.26. - Decided in favour of assessee for statistical purposes. Disallowance of Car running & maintenance expenses, Office telephone and traveling expenses and mess expenses - Held that:- CIT(A) after considering the preceding years gross receipt and expenditure held that adhoc disallowances is not warranted for the relevant assessment year. The gross profit of the current assessment year is more than the G.P. of the previous assessment year. The book result of the assessee was accepted and no specific defects were pointed out. The gross receipt for the current assessment year had increased to ₹ 14.86 crores from ₹ 12.26 crores in the previous assessment year. The expenditure claimed under the various heads (under dispute) are less in the current assessment year compared to the expenditure allowed in previous assessment year. Therefore, no adhoc disallowance of ₹ 1,44,666/- and ₹ 50,000/- are warranted in the facts and circumstances of the case. - Decided against revenue
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