1981 (11) TMI 77

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....(A) erred on facts and in law in deleting disallowance of Rs. 5,000 made out of travelling expenses. 2. The CIT (A) erred on facts and in law deleting the disallowance of Rs. 8,000 out of Sundry expenses. 3. The CIT (A) erred on facts and in law in deleting the disallowance of Rs. 10,629 made under s. 40A(8) of the IT Act, 1961, being 15 per cent on the interest of Rs. 70,864 due to the asse....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....een deleted by the CIT (A), since apart from the fact that we do concur with the reasonings and conclusions arrived at by the CIT (A) the disallowance has been made on more surmises and conjectures and is not based on material on record, hence does not stand to reason. 5. As regards grounds No. 2, the reasoning of the ITO reads as under: "The history of the case shows that every year a lumps....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....mpugned order on the above score, upholding the same we do hold that the disallowance made by the ITO has justifiably been deleted by him. 7. As regards ground No. 3, the reasoning of the ITO reads as under: "The assessee has paid interest amounting to Rs. 4,10,737 on deposits received by it other than from banks. According to Sec. 40A(8) 15 per cent of such interest will be allowed as deduc....