2016 (11) TMI 1642

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....1- 12 arises out of the order passed by the CIT (Appeals) on 16.02.2016 deleting the addition of Rs. 48,20,118/- made by the AO u/s 40A(2)(b) of the Income-tax Act, 1961 (hereinafter also called 'the Act'). 2. Briefly stated, the facts of the case are that the assessee is a joint venture with the following three partners as joint ventures:- i) KEC International Limited - 60 percent ii) Uni....

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....against such deletion. 4. I have heard the ld. AR and perused the relevant material on record. None is present on behalf of the Revenue. In fact, there is no one to attend the proceedings from the side of the Revenue in all the cases fixed before the Bench today. The ld. AR insisted that the appeal be disposed of. I am agreeable with the contention of the ld. AR and, accordingly, proceeding to d....

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....to him therefrom, so much of the expenditure as is so considered by him to be excessive or unreasonable shall not be allowed as a deduction.' 6. On going through the mandate of the above provision, it is clear that the disallowance under this section is made in respect of the expenses incurred or payments made which are not deductible. This section has no application to income aspect of the asse....