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2022 (10) TMI 842 - ITAT DELHIEstimation of income - bogus purchases - HELD THAT:- As from the orders of the authorities below it nowhere appears that the Assessee has duly produced the stock records as claimed by the Assessee. It is a fact that in Item no. 35 of form no. 3CD, the Assessee instead of providing quantitative details of goods traded and raw-material etc. simply stated that Item no. 35 of Form 3CD is not applicable. Assessee failed to demonstrate before the authorities below as to how the Assessee was not required to provide quantitative details of goods traded and raw-material etc. in Item no. 35 of Form no. 3CD before the authorities below. Find no material and/or reason to controvert the findings of the authorities below. We further observe that for the ends of justice the ld. Commissioner has given substantial relief to the Assessee by reducing the disallowance from 20% to 10%. Hence in cumulative effects, no interference is warranted. Consequently, the decision of the learned Commissioner in affirming the disallowance @ 10% of the consumption on foods and beverages is affirmed. Nature of expenses - Disallowance of expenses incurred on repairs by treating the said expenditure as capital in nature - HELD THAT:- AO specifically held that the Assessee has incurred the expenses on purchase of Air Conditioners outdoor units which were stolen, pipes, cables and accessories, compressor, miscellaneous accessories, dryer, PVC Cable, wooden crate boat, kitchen equipments etc. which provides enduring benefits and not confined to the use of one year only and also not of the ‘recurring nature’. Commissioner though affirmed the addition on these items, however allowed the depreciation on the said expenditure before computing the income. We have given thoughtful consideration to the determination made by the Ld. Commissioner and the AO and do not find any infirmity in determination made by the Ld. Commissioner on the issue in hand. Even otherwise also we do not find any material/reason to controvert the findings of the ld. Commissioner. Hence, addition under challenge does not require any interference. Consequently ground nos. 5 & 6 are also dismissed.
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