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2018 (6) TMI 600 - AT - Income TaxGenuineness of expenditure - Additions made on carriage inward charges / loading unloading expenditure - Cash payments - allegation of split of transactions artificially - Held that:- The AO as well as CIT(A) take note the fact that the assessee has made payment to more than 700 persons within all the specified limits an attempt to steer itself clear of relevant provision contained u/s. 40A(3) as well as prescribing TDS deduction in Chapter-XVIIB of the Act. We do not agree to this reasoning in entirety. Assessee’s business of iron and steel dealership and trading requires of such kind of routine business expenditure - neither the AO nor the CIT(A) draws any comparison of the impugned expenditure with corresponding figures in preceding or succeeding assessment year(s) so as to highlight any excessive element therein the assessee has also not substantiated all of its payees’ relevant details for the purpose of carrying out a random verification even - thus we deem it proper in these peculiar facts and circumstances that a lump sum disallowance @ 6% instead of 15% under challenge would be just and proper - hence AO is directed to recompute the impugned disallowance @ 6% afresh - Partly allowed in favor of assessee.
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