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TMI Blog1981 (11) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... elling expenses. 2. The CIT (A) erred on facts and in law deleting the disallowance of Rs. 8,000 out of Sundry expenses. 3. The CIT (A) erred on facts and in law in deleting the disallowance of Rs. 10,629 made under s. 40A(8) of the IT Act, 1961, being 15 per cent on the interest of Rs. 70,864 due to the assessee on the amount of Rs. 6,69,900. 2. We have heard the ld. Deptl. Rep. as also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sonings and conclusions arrived at by the CIT (A) the disallowance has been made on more surmises and conjectures and is not based on material on record, hence does not stand to reason. 5. As regards grounds No. 2, the reasoning of the ITO reads as under: "The history of the case shows that every year a lumpsum disallowance was made to cover up sundry in admissibles. Last year Rs. 8,000 was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e made by the ITO has justifiably been deleted by him. 7. As regards ground No. 3, the reasoning of the ITO reads as under: "The assessee has paid interest amounting to Rs. 4,10,737 on deposits received by it other than from banks. According to Sec. 40A(8) 15 per cent of such interest will be allowed as deduction. The assessee was supposed to add back 15 per cent of such interest but the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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