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2012 (4) TMI 260 - ITAT MUMBAIDeletion of addition made by the A.O. on account of adjustments made to the ALP u/s 92CA(3) in respect of international transactions entered into with AE by Ld. CIT(A) - determination of comparable - Held that:- geographical difference is not material so far as it applies to the logistics industry - there is splitting of gross profit equally at 50:50 even in Pakistan, Bangladesh and Sri Lanka which fall under the same geographical region. - the detailed reasoning given by the ld. CIT(A) we do not find any infirmity in the CUP method (50:50 module) adopted by the assessee - the order of the ld. CIT(A) is upheld and the ground raised by the Revenue is dismissed. Petty cash expenses - A.O. noted that many of the petty cash expenses were not supported by invoices/bills – assessee submitted that the above amount is merely 1.82% of the income from operations -CIT(A) deleted the addition as on observation that the assessee has duly produced the vouchers for A.O's verification but A.O. has not given any cogent reasons for making an adhoc disallowance – Held that:- claiming any expenditure as genuine business expenditure the onus is always on the assessee to satisfy the A.O. with evidence to his satisfaction to substantiate that the expenditure has been incurred wholly and exclusively for the purpose of business – disallowance of ₹ 20 lacs appears to be on higher side adhoc disallowance of an amount of ₹ 10 lacs will allowed appeal by the Revenue is partly allowed. Employees' contribution to PF – Held that:- the contributions have been paid before the grace period, therefore, in view of the consistent decisions of the co-ordinate Benches of the Tribunal that amounts paid within the grace period has to be allowed as deduction, the amount cannot be disallowed
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