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2017 (10) TMI 1261 - AT - Income TaxDisallowance of carriage inward and delivery charge - addition as unverifiable element allegedly involved in the said expenses - Held that:- No case was made out by AO to show that the expenses claimed by the assessee on carriage inward and delivery charges were excessive or unreasonable having regard to the nature of the assessee’s business. At the time of hearing before us, the learned DR has not been able to raise any material contention to dispute the facts and figures furnished by the assessee in this regard. Keeping in view these facts and figures furnished by the assessee as well as having regard to the other aspects of the matter, we find ourselves in agreement with the Ld. CIT (A) that adhoc disallowance of 50% made by the AO out of carriage inward and delivery charges was not sustainable and upholding his impugned order deleting the same - Decided against revenue Addition on understatement of cement sale made in cash - Held that:- As rightly observed by the Ld. CIT (A), it is a normal occurrence of business that sales in cash are made invariably at lower rate than credit sales due to cash discount offered. The allegation of the Assessing Officer regarding the understatement of cash sales by the assessee thus was not well founded and the same was not based on any concrete or cogent material. Keeping in view all these facts of the case, we find no infirmity in the impugned order of the Ld. CIT (A) deleting the addition made by the AO on account of the alleged understatement of cash sales by the assessee and upholding the same, we dismiss ground no 5 of the revenue’s appeal. Addition on account of the alleged low gross profit shown by the assessee on the sale of TMT Bars - Held that:- No basis whatsoever was given by the AO for applying the GP rate of 15% except stating that it is a common knowledge that TMT bars are not sold below 15% of GP. This addition thus was made by the AO arbitrarily on the basis of the conjectures and surmises and the Ld. CIT (A), in our opinion, is fully justified to delete the same.
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