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TMI Blog2020 (1) TMI 1714X X X X Extracts X X X X X X X X Extracts X X X X ..... lower the disallowance to Rs.1 lac. Addition on account of vehicle expenses, festival expenses, telephone expenses and conveyance expenses - disallowance by the AO which is 1/5th of these expenses - We hereby hold that 1/10t h of the telephone and vehicle expenses may be treated as personal expenses by the partners. The festival expenses are incurred for performing pooja at office premises and distribution of sweets to the office staff which is allowed as business expenditure. Hence, no disallowance is called for. Disallowance @10% on account of travelling expenses, since no evidence has been brought on record, any element of non-business purpose, we hereby delete the disallowance made by the Assessing Officer. TDS mismatch, the AO is di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in making an ad-hoc disallowance of Rs. 3, 90, 513/- on account of travelling expenses and that too without observing the principles of natural justice. 5. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in not admitting/considering the additional grounds filed by the assessee vide petition dated 06.06.2016." 3. The Assessing Officer has disallowed Rs. 7 lacs on account of unverifiable purchases to plug the leakage of revenue. The total purchases made by the assessee are to the tune of Rs.6.15 crores. The ld. CIT (A) confirmed the addition holding that primary onus of providing evidences lies on the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he facts on record, since revenue has not determined the expenses for which bills have been missing, we hereby lower the disallowance to Rs.1 lac. 8. Similarly, the ld. CIT (A) has confirmed the addition of Rs.1, 17,577/- on account of vehicle expenses, festival expenses, telephone expenses and conveyance expenses. The total amount disallowed by the Assessing Officer was Rs.2,35,154/- which is 1/5th of these expenses. 9. Before us, it was argued that these are expenses incurred with the running of the business and no personal element can be attributed to these expenses. Since, these expenses of conveyance and small repairs they have been self-vouched, the ld. AR submitted that at the most 5% disallowance may be made. 10. Having heard bot ..... X X X X Extracts X X X X X X X X Extracts X X X X
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