TMI Blog1990 (1) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... 16,045 in the asst. yr. 1983-84. The ITO considered this increase unreasonable and disallowed Rs. 5,000 in the asst. yr. 1983-84 and Rs. 2,400 in the asst. yr. 1984-85 by invoking provisions of s. 40A(2)(a) of the IT Act. It was explained to the CIT(A) that the assessee had taken two godowns from M/s Chatur Co. in the asst. yr. 1983-84, to whom Rs. 5,645 were paid as rent. Since M/s Chatur Co. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rent to near relation was only Rs. 100 p.m. and hence there was no justification even on the basis given by the learned CIT(A) for sustaining the disallowance at Rs. 2,400 during these two years. Secondly, he argued that the increase by Rs. 100 p.m. over a period of about five years was a nominal increase and it could not be said that only when the landlord enters into the litigation that the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned CIT(A) is directed to be cancelled. The assessee gets a relief of Rs. 2,400 in each of these two years. 5. The next objection of the assessee is regarding a disallowance of Rs. 500 in each of the two years on account of telephone expenses. IT was explained that assessee's sales were around Rs. 40 lacs and income at more than Rs. 1,50,000, the claim of telephone expenses was only Rs. 2,710 f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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