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2016 (1) TMI 491 - ITAT DELHI

2016 (1) TMI 491 - ITAT DELHI - TMI - Disallowance of five different heads of expenditure, i.e., electricity, telephone, mobile, conveyance and miscellaneous expenditure - Held that:- The disallowance made on the ground that there would be possible leakages is not acceptable as such ad hoc disallowance of 25% is not called for. Thus, this disallowance is deleted. - Decided in favour of assessee.

Addition made u/s 40A(iii) - assessee had purchased medical instruments worth ₹ 25,0 .....

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ance is not sustainable for the reason that the AO has not made any such allegation. There is no basis for the Revenue to reject this claim of the assessee.- Decided in favour of assessee.

Addition towards household expenses - Held that:- The assessee submits that the total household expenses actually incurred and shown are for ₹ 1,68,000/- which is very reasonable. The AO estimated the household expenses at ₹ 2,04,000/- and made an addition of ₹ 36,000/-. Thus in vi .....

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as income from profession, bank interest and agricultural income. He filed his return of income on 29.3.2011 declaring total income of ₹ 2,51,259/-. Assessment was completed u/s 143(3) by the AO on 22.3.2013 determining the total income at ₹ 4,03,690/-. Aggrieved, the assessee carried the matter in appeal without success. Further aggrieved, the assessee is before us on the following grounds:- 1. That the prejudicial observations contained in the body of Appellate Order U/s 250 are ei .....

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00/= against ₹ 624250/- of the preceding year. 3. That the addition of ₹ 29689/- stating U/s 40A (iii) has been wrongly confirmed, in spite of capital expenditure for which payments were made at ₹ 20000/- or below in a day after purchasing goods through two sales invoices & not Cash memoes. 4. That confirmation of addition made for Bank Interest paid at ₹ 64563/- for clinic purposes is totally uncalled for, specially being the amount paid to Bank against loan obtained .....

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Revenue. Ground No.1 is against the disallowance of ₹ 22,180/- out of five different heads of expenditure, i.e., electricity, telephone, mobile, conveyance and miscellaneous expenditure. The disallowance was made on the ground that there would be possible leakages. In my view, such ad hoc disallowance of 25% is not called for. Thus, this disallowance is deleted. 4. The second addition is of ₹ 29,689/- made u/s 40A(iii). The assessee had purchased medical instruments worth ₹ 25 .....

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rity was right in upholding this disallowance. The findings on page 5 of the order of the ld.CIT(A) are confirmed. 6. The next addition is disallowance of bank interest. The disallowance as made on the ground that the loan availed from bank is not for business or professional purposes. The ld.CIT(A) recorded as follows:- 3. Addition of ₹ 64,563/= paid as Bank Interest:- The Assessee has constructed a house up to the year 2006 and stared living since then for which a house loan of ₹ 1 .....

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/= on it debiting Income & Expenditure account A copy of loan sanction letter dated 07.02.2007 is being enclosed as……… annexure-(B). Since the said loan interest remained exclusively for Nursing Home/Professional purpose, it merits to be allowed completely, being exclusively incidental to professional work and income & specially when no clinic rent was paid in any way. The facts of the case as well as submissions made by the appellant have been carefully considered. .....

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