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2018 (11) TMI 114 - ITAT DELHIAd hoc disallowance with respect to conveyance expenses, vehicle running and maintenance expenses and business promotion expenses - Held that:- It is evident from the past assessment records that no similar disallowance had been made by the department in assessment years 2005-06, 2006-07, 2007-08, 2008-09 and 2009-10 in respect of conveyance expenses although the assessment was completed u/s 153A r/w section 153(3) of the Act. With respect to vehicle running and maintenance expenses and business promotion expenses, no disallowance had been made in assessment years 2005-06, 2006-07, 2007-08, 2008-09 and 2009-10 and it is further noted that the basis of disallowance in the impugned year is a mere estimation on the part of Assessing Officer wherein he has disallowed 1/5th of the expenses without assigning any reason for such disallowance. Assessing Officer has not pointed out any specific defects in the books of accounts/details produced before him with regard to these expenses. It is also undisputed that the books of accounts of the assessee were duly audited and they were produced before the Assessing Officer. It is settled law that in absence of any corroborative finding, ad hoc disallowance cannot be upheld. - Decided in favour of assessee Addition on account of undisclosed cash transaction - CIT(A) has assumed that 50% of the seized Annexure A-1 was a duplication - Held that:- Commissioner of Income Tax (A) has not specifically recorded a reason as to how he assumed a figure of 50% to be of duplication, therefore, on this count alone, the department succeeds and we deem it expedient in the interest of justice to restore ground no. 1 to the file of the CIT(A) to be adjudicated de novo after giving due opportunity to the assessee to present its case. - Ground of department’s appeal stands allowed for statistical purposes. Addition on short and excess recoveries by the assessee - Held that:- Commissioner of Income Tax (A) held the debit of the impugned amount as reasonable. On the facts of the case, we find no reason to interfere with the finding of the Ld. Commissioner of Income Tax (A) on the issue as the Ld. Commissioner of Income Tax (A) has adjudicated the issue after duly considering the quantum of turnover of the assessee as well the details submitted before him. The Ld. CIT DR also could not point out any factual error in the findings of the Ld. Commissioner of Income Tax (A) in this regard - decided against revenue Addition with respect to liquidated damages - Held that:- Commissioner of Income Tax (A) has noted that in view of the nature of business being conducted by the assessee on a large scale which entails making supplies to various agencies including government agencies, such claims were bound to arise. We also note that the Assessing Officer has disallowed the entire amount of expenditure claimed as liquidated damages without pointing out any specific instance where such claim was not allowable. This is not legally tenable and even the Ld. CIT DR was unable to point out any legal or factual inaccuracy in the order of the Ld. Commissioner of Income Tax (A). - decided against revenue
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