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25. In view of above discussion, we direct the AO to allow the claim of deduction keeping in view the provisions of Section 80HHC(2)(a) r/w Section 155(13), after verifying that due ex post facto permission has been received by the concerned assessee from the competent authority in this regard We direct accordingly

26. In the case of M/s BSP Exports m ITA No 475/Ahd/2004, the ground regarding disallowance of 20 per cent of total telephone expenses, has been taken by the assessee

27. We have heard the rival contentions and find from the record that while dealing with the expenses on account of telephone, the AO found that the assessee has incurred an expenditure of Rs. 1,36,635 as telephone expenses in current year whereas in the previous year it was Rs. 76,513 The AO observed that besides decrease in the turnover m comparison to the last year, the telephone expenses have been increased tremendously After verifying the details of telephone expenditure, the AO disallowed 20 per cent of the total expenses by observing that there is no check over the expenses and personal use of telephone by the partners of the assessee firm The order of the AO was confirmed by the CIT(A)