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Appeal against disallowance of various expenses by AAC. Analysis: The appeal was filed by the assessee against the order of the AAC, challenging the disallowance of expenses related to travelling, car & scooter, vyaparic, crockery, glassware, tirpal, guest, Deepawali & Holi, and miscellaneous expenses, along with depreciation and other expenses at the head office and branch office. The ITO disallowed various amounts under different heads due to personal and non-business use concerns, lack of bifurcation of expenses, inadmissible items, and estimation basis. The AAC confirmed some disallowances but reduced others, leading to the present appeal. In the appellate proceedings, both counsels were heard, and it was noted that no disallowances were made in the previous assessment year except for shop expenses. The appellant, a registered firm earning income from commission in transport business and labor, does not own trucks but hires them for transportation, incurring significant expenses on staff and customer entertainment. Considering the increased business activity, the Tribunal found no justification for the disallowances, except for shop expenses. The Tribunal overturned all disallowances, including shop expenses, as the business expenses had decreased compared to the previous year, indicating no need for disallowances. In conclusion, the Tribunal reversed the orders of the lower authorities and allowed the appeal filed by the assessee. The disallowances made by the ITO and confirmed by the AAC were deemed unjustified given the nature of the assessee's business and the increase in business activities. The Tribunal found no basis for disallowing the claimed expenses, except for shop expenses, and therefore, all disallowances were deleted.
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