9911796707
TMI Blog2014 (8) TMI 830X X X X Extracts X X X X X X X X Extracts X X X X ..... hat:- The assessee has incurred the expenses toward purchases of books and periodicals, car repairs, telephone expenses, salaries, repairs and maintenance, printing and stationery and professional fees - most of the expenses were incurred through cheque payment/credit card payment - the Assessee has failed to furnish the relevant vouchers and bills disallowance of part of the claim is justified to take care of deficiency if any in the claim - the disallowance is restricted to 10% of the amount claimed by the Assessee - the order of the CIT(A) is modified – Decided partly in favour of Assessee. - I.T.A. No. 8852/Mum/2011 - - - Dated:- 18-7-2014 - Shri B. R. Baskaran (AM) And Sanjay Garg, (JM),JJ. For the Appellant : None For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -. The Assessee was asked to produce books of accounts/bills/vouchers to support the above said claim of purchases. Since the Assessee failed to furnish any evidence, the AO disallowed 30% of the purchases claimed by the Assessee holding that the purchases are non-verifiable and hence not allowable u/s 37(1) of the Income Tax Act, 1961 (the Act). The Assessee had also claimed a sum of ₹ 5,31,036/- as administrative and selling expenses. Since the Assessee failed to furnish details/vouchers to support the above said claim of expenses, the AO disallowed 30% of the same. The Assessee has claimed depreciation to the tune of ₹ 2,06,246/-. However, the Assessee did not file any depreciation statement and did not furnish any details th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome extent. Hence, in our view, the disallowance of purchases claim to the tune of 30% appears to be on higher side. Considering the fact that the assesse has failed to furnish the primary evidences and other circumstances of the issue, we are of the view that this matter would meet ends of justice if the disallowance is restricted to ₹ 50,000/-. Accordingly, we modify the order of ld. CIT(A) on this issue and direct the AO to restrict disallowance out of purchases to ₹ 50,000/-. 7. The next issue relates to disallowance of administrative and selling expenses. We have already noticed that the ld. CIT(A) has reduced the disallowance to 20% as against the 30% disallowed by the AO. From the order of the ld. CIT(A), we notice tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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