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2022 (12) TMI 162 - AT - Income TaxBenefit u/s 10(23C)(iiiad) - Disallowance at the rate of 10% out of total salary when EPF was also deducted from salary of the staff - HELD THAT:- As in the case of Vijay Kumar Grover vs. ITO [2022 (6) TMI 1101 - ITAT AMRITSAR] and Ajay Kumar Grover vs. ITO [2022 (7) TMI 478 - ITAT AMRITSAR] We find that the AO had purely made addition by making ad hoc disallowance out of expenditure @ 10%. The ld. AO had not specified the specific lacuna related disallowance of expenditure. CIT-DR was not able to point out any contrary view in relation to submission of ld Counsel. AO is hereby directed to delete this disallowance made amount to Rs.146100/- and 293100/-. As argued that “van rent” amount was duly deleted by the ld. CIT(A). This particular “van rent” was taken twice both debit and credit side income of expenditure account for F.Y. 2014-15. Both the entries of “van rent”per contra. So, both the entries are deleted from income and expenditure account. The ld. Counsel has annexed the audit report with income and expenditure account. Accordingly, the assessee is an educational society and the gross receipt is calculated after deduction of “van rent” - Accordingly the assessee is eligible for benefit u/s 10(23C)(iiiad) r.w.s rule 2BC of the I.T. Rule 1962. We consider the submission of ld AO. The fact is that ‘van rent’ is in contra entry in both side of I & E accounts. After deduction of same amount from both the sides, the Turn Over of assessee is coming below 1cr. CIT-DR had not made any strong objection against the ground of the assessee. We direct for considering the turnover amount in I & E A/c & to allow the benefit u/s 10(23C) of the Act.
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