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TMI Blog2010 (1) TMI 894X X X X Extracts X X X X X X X X Extracts X X X X ..... ed made by the AO, department are allowed in part. Adhoc disallowance of expenditure - held that:- Various vouchers have not been maintained and almost all the payments have been made in cash; therefore, it is thought fit to restrict the disallowance to 10% against 20% disallowed by the AO and against 5% restricted by the CIT(A) as that will meet the end of justice to both sides. - ITA Nos. 2577 to 2581/Mum/2009 - - - Dated:- 21-1-2010 - R.K. Gupta, B. Ramakotaiah, JJ. Prakash K. Jatwani for the Appellant R.K. Sahu for the Respondent ORDER R.K. Gupta: These are five appeal by the department against order of the CIT(A) relating to assessment years 2000-01 to 2003-04 and 2005-06. 2. Similar issues were involved in all the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lue added by him. 5.2 Similar additions were made for other years also. 6. The CIT(A), after considering the submissions and perusing the material on record was satisfied that the two bungalows occupied by the partners are in the limit of Navi Mumbai Municipal Corporation (NMMC) as Municipal Rateable Value (MRV) of the properties were filed before the CIT(A). The CIT(A) observed that where the properties are situated in the limit of Municipal Corporation then on the basis of MRV of the property, the rental value has to be determined. Accordingly, the AO was directed to calculate the value of rental income by taking the account of rental value as declared by MMMC, 'C' ward, Vasi. The AO was also directed to compute the income subject to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to consideration the past history and voluminous details of expenses held that the disallowance made by the AO @ 25% is on higher side; accordingly, he restricted the disallowance to 5% of the total site expenses claimed. In this way, the CIT(A) has allowed a relief of Rs.1,21,677/-, Rs.2,35,936/- Rs.1,21,677/-, Rs.2,14,569/- and Rs.2,18,410/- respectively for all the years here before us. 11. After considering the orders of the authorities below, we find that the CIT(A) has allowed some excessive relief. Various vouchers have not been maintained and almost all the payments have been made in cash; therefore, it is thought fit to restrict the disallowance to 10% against 20% disallowed by the AO and against 5% restricted by the CIT(A) as th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cher details found that most of the payments are genuine. However, because of unverifiable nature of some of the vouchers, the CIT(A) restricted the disallowance to Rs.3 lacs for AY 2000-01 and similarly the CIT(A) restricted the disallowance to Rs.2 lacs, Rs.3 lacs and Rs.1 lacs respectively for the remaining years. 16. The ld DR placed reliance on the order of the AO. It was further submitted that the AO was consistent in his approach to disallow the expenses as he disallowed 1% of the total sub-contract expenses. However, the ld CIT(A) is not consistent in confirming part disallowance. On the other hand, the ld counsel of the assessee strongly placed reliance on the order of the CIT(A). It was further submitted that each year is indepe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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