Tribunal remits electricity & maintenance expenses, upholds reduction in general expenses disallowance.

The Tribunal remitted the disallowance of electricity and maintenance expenses for offices used by a sister concern back to the Assessing Officer for verification. Regarding the disallowance of general expenses, the Tribunal upheld the CIT(A)'s decision to reduce the disallowed amount to 10% from 25% as the assessee failed to provide contrary material. The appeal was partly allowed for statistical purposes.

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Issues involved: Disallowance of electricity and maintenance expenses for offices used by sister concern, disallowance of general expenses.

Issue 1 - Disallowance of electricity and maintenance expenses:
During assessment, AO disallowed electricity expenses of Rs. 1,53,527 and maintenance expenses of Rs. 3,948 for offices used by a sister concern. Assessee claimed expenses were borne by different sister concerns as per mutual agreement. AR submitted details of expenses borne by sister concerns. DR argued facts needed verification. Tribunal remitted matter to AO for verification and fresh decision.

Issue 2 - Disallowance of general expenses:
AO noted all expenses were paid by a partner through credit card, but bills for only Rs. 18,242 were furnished out of total Rs. 46,409. AO disallowed Rs. 36,523, which CIT(A) reduced to 10% from 25%. Tribunal upheld CIT(A)'s decision as assessee failed to provide contrary material.

In conclusion, the appeal was partly allowed for statistical purposes.

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