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2018 (8) TMI 925 - HC - Income TaxPartial disallowance on ad-hoc basis without rejecting books of accounts - disallowance to consumable stores - ad-hoc disallowance solely by taking percentage basis of consumption stores consumed in succeeding year - Held that:- the issues raised in the appeal are only questions of fact and no question of law is involved. All three authorities have concurrently held after examining the facts, evidence and material on record that the assessee was unable to substantiate its claim for exponentially increase in the expenditure on consumables. It was permissible for the AO to reject the books of account under Section 145 of the Act and pass assessment order under Section 144 of the Act. Instead, the AO had disallowed the claim of expenditure on "Consumable Stores" only 10%. The assessee is not prejudiced in any manner in not resorting to the best judgment assessment by the AO. Disallowance sustained - Decided against the assessee.
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