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2022 (6) TMI 118 - AT - Income TaxAd hoc disallowance made of expenditure incurred from goods replaced - disallowance of expenditure on account of goods given to players for sale promotion and disallowance on account of discount given to Indian customers - What necessitated the disallowance of expenditure? - HELD THAT:- We find that identical issue arose in assessee's own case in A.Y. 2013-14 & 2014-15 and the ad hoc disallowance made by AO has been deleted. We further find that for A.Y. 2016-17 & 2017-18, the AO has completed assessment u/s. 143(3) and no additions has been made by AO on the aforesaid issues. Disallowance by the AO has been made on ad hoc basis without pointing out any instance which necessitated the disallowance of expenditure. We further find that CIT(A) while deciding the issue in assessee's favour has given a finding that the facts of the case in the year under consideration are identical to that of A.Y. 2013-14 & 2014-15. The aforesaid fact noted by CIT(A) has not been controverted by Revenue. Considering the totality of the aforesaid facts, we are of the view that CIT(A) has rightly deleted addition and to the extent of sale promotion expenses, he has upheld that disallowance to the extent of 10% made by AO for which the assessee also has no grievance. Considering the aforesaid fact, we find no reason to interfere in the order of CIT(A). Thus the grounds of Revenue are dismissed.
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