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2017 (8) TMI 337 - AT - Income TaxDisallowance of expenses incurred on account of incentive paid to drivers - AO made adhoc disallowance for the reasons that the payments were made by the assessee in cash - Held that:- As noticed that growth in the total turnover of the assessee was about 24% which incrased the total revenue of the assessee who was engaged in the business of transportation. The assessee for the purposes of transportation services had taken services from fleet owners/transporters and paid incentive to the drivers for timely delivery of goods at destination. As considered 80% of the expenses as genuine and disallowed 20% of the expenses on adhoc basis but there was no basis for making the adhoc disallowance. The AO did not doubt the incurring of expenses, he only doubted the mode of payments. In the present case, the payments of incentives to the drivers were made for timely delivery of the goods at the destination. It was claimed that such type of expenses had been accepted in the preceding as well as the succeeding year, the said claim was not rebutted at the time of hearing. We, therefore, decide that the adhoc disallowance without any basis made by the AO and sustained by the ld. CIT(A) was not justified - Appeal of the assessee is allowed.
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