2002 (11) TMI 319

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..... ORDER Keshaw Prasad, Accountant Member - The cross appeals have been directed by the assessee as well as by the revenue against the orders of the CIT(A) dated 21-11-2000 pertaining to assessment year 1990-91. For the sake of convenience, we will first take up the appeal directed by the assessee. 2. Ground Nos. 1 to 6 related to the disallowance of 10 per cent out of staff welfare and....

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....rious heads including staff salary at Rs. 13,25,450. The Assessing Officer disallowed 1/3rd of the same for non-business purposes. On appeal, the CIT(A) directed to disallow 10 per cent of the staff salary and 1/3rd of the other expenses. The assessee is in appeal before us against the disallowance sustained by the CIT(A). 4. It is argued by the ld. counsels that the payment of staff salary has....

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....was not justified in sustaining the disallowance to the extent of 10 per cent of staff salary. The disallowance sustained by the CIT(A) is, therefore, deleted. 7. As regards 1/3rd disallowance out of other expenses, we find that though no specific instances have been given for disallowance, the disallowance was based on vague observations. However, looking to the reasoning given by the Assessin....