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2021 (5) TMI 842 - HC - Income TaxDisallowance of expenses - Allowable business expenses - AO granted 50% relief and held that the assessee had not submitted the detailed statement of expenditure with supporting material before the Tribunal - HELD THAT:- AO was of the prima facie view that the assessee would have incurred expenses under various heads mentioned by them. The assessee has to be fully blamed for inviting such a finding. Had they produced relevant documents to justify the expenditure claimed by them, which, according to them, were towards vessel handling charges, traveling and conveyance allowances, labour charges, secretarial expenses, postage and courier, then, in all probabilities, the assessee might have got relief before the Tribunal. The second aspect is that before the First Appellate Authority, the assessee did not effectively contest the matter though they were represented by an authorized representative, who appeared to have given an explanation, which, in all probabilities, did not appeal to the First Appellate Authority and he had stated that the authorized representative had no explanation as to why additions made were incorrect or excessive. Only before the Tribunal, the assessee had taken up the matter seriously and they have been able to convince the Tribunal for two of the three issues required to be remanded. Considering all and since the Assessing Officer has to reconsider two of the issues, we would like the Assessing Officer to look into the issue relating to other expenses claimed by the assessee for 50% of disallowance. If the assessee is able to produce documents, the Assessing Officer shall consider the same and redo the assessment along with the other two issues, which have been remanded to him by the Tribunal.
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