2012 (10) TMI 1066

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....ellaneous Rs. 3,874/- and Out of salary Rs. 59,800/-. 2) The Ld. CIT(A) has erred in confirming the addition of Rs. 2,98,629/- and Rs. 62,536/- respectively being amount of suppression of sales and gross margin thereon without appreciating the facts of the case and submissions made before him in this regard. 3) The Ld. CIT(A) has erred in confirming the disallowance of Rs. 30,000/- out of salary payment made to party referred to in section 40A(2)(b) of the Act. 4) The Ld. CIT(A) has erred in ignoring the adhoc disallowance of 20% of conveyance expenses made by the AO despite the fact that such disallowance has resulted in total disallowance of conveyance expenses to 120% of the total expenses claimed. Similarly the CIT(A) has also ....

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....ngly directed to be allowed having regard to the judgment rendered by Hon'ble Kerala High Court in the case of CIT vs. S.P. Nair & Ors. (234 ITR 94) (Ker). The balance addition of Rs. 8,080/- is sustained. 4. In so far as the disallowance of miscellaneous expenses of Rs. 3,874/- out of the total expenses of Rs. 8,288/- is concerned, the disallowance is found reasonable as estimated deduction allowed by the assessing authority is commensurate to the business activities and turnover achieved by the assessee. The disallowance so made, therefore, stands confirmed. 5. In so far as the disallowance of salary of Rs. 59,800/- is concerned, the authorities below have also disallowed a sum of Rs. 30,000/- paid in cash to a lady employee who....