AO without rejecting the books, disallowed various expenses on percentage basis, on ground that personal element in such expenses cannot be ruled out. On appeal, the Tribunal held that, such disallowance is arbitrary in nature, and not sustainable. Disallowance can be made only if, expenses have no nexus to the business, or if any deficiencies is found in the vouchers, or there is no bill supporting the incurrence of an expenditure. (AY.2015-16)