2015 (6) TMI 1086

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.... (Judicial Member) The assessee is aggrieved by impugned order dated 22/10/2014 of the ld. First Appellate Authority, Mumbai, on the ground that the ld. Commissioner of Income Tax (Appeals) erred in confirming the ad-hoc disallowance at the rate of 5% of the total expenditure although the expenditure was incurred solely for the purpose of business and further confirming the ad-hoc disallowance ....

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....es for business purposes. The Assessing Officer suspected the genuineness of these expenditure by holding that there was element of personal use, thus, he made disallowance at the rate of 10% of such expenditure. On appeal, before the ld. Commissioner of Income Tax (Appeals), the disallowance was restricted to 5% of the claimed expenses incurred under various heads, thus, part relief was granted t....

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.... this Tribunal, the assessee produced the copy of the ledger account of various heads of expenses by claiming that such expenses were incurred wholly and exclusively for the purposes of business. All the expenses were incurred against bills and for commercial expediency, thus, no disallowance is expected to be made u/s 37(1) of the Act. The assessee is a institution, thus, no ad-hoc addition is pe....

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....e ground raised by contending that Rule-8D of the Rules cannot ipso-facto, be applied to the facts of the present appeal. The ld. DR defended the addition. 3.1. I have considered the rival submissions and perused the material available on record. If the observation made in the assessment order, leading to addition made to the total income, conclusion drawn in the impugned order, material availa....