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TMI Blog2017 (3) TMI 316X X X X Extracts X X X X X X X X Extracts X X X X ..... the customers and had offered such receipts in its return of income. If any income has been offered for taxation corresponding expenditure has to be allowed, is the cardinal principle of tax-jurisprudence. The FAA has restricted the disallowance to 25% as against the 100% disallowance made by the AO. We find that similar issue was decided by the Tribunal in the case of APL India Private Ltd. (2005 (5) TMI 288 - ITAT MADRAS-D) and held that in the case of clearing and forwarding agents the disallowance should not exceed 25%. - Decided against revenue. - ITA No. 1197/Mum/2013 - - - Dated:- 22-2-2017 - Shri Rajendra, A. M. And Sanjay Garg, J. M. Revenue by : Shri S. K. Mishra Assessee by : Shri Vipul Joshi ORDER Per Raje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... But, in a subsequent affidavit, dated 31/03/200, the director stated that only 25% of the expenses were offered for taxation and the balance was claimed a genuine business expenses. As the director had agreed to offer the whole expenses for taxation and his statement dated 07/03/2011, so, the AO disallowed the entire expenditure i. e. ₹ 46. 59 lakhs (Rs. 10. 14 lakhs+ ₹ 32. 45 lakhs). 3. Aggrieved by the order of the AO, the assessee preferred an appeal before the First Appellate Authority (FAA). Before him, it made elaborate submissions and relied upon the decision of Tribunal in the case of A. P. L. (India) Private Ltd. (97 TTJ187). After considering the available material, he held that the assessee was carrying on the busi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at entire expenses could not be accepted a genuine. Referring to the order of the A. P. L. India Private Ltd. (supra), he held that payments made to dockworkers expedite the loading and unloading was allowable as deduction u/s. 37 of the Act, that the deduction was allowable because the payments were not illegal or proposed to public policy, that the Tribunal has restricted the disallowance, on estimate basis, 25% of the expenditure incurred. Finally, he held that disallowance of 25% offered by the assessee in the affidavit of the director, dated 31/03/2011 was reasonable. 4. During the course of hearing before us, the Departmental Representative(DR) stated that the director of the company in his statement recorded during the survey proc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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