Tribunal held that, when there is a disproportionate increase in expenses vis-à-vis the increase in gross receipts, personal element to the tune of 10% of business promotion expenses could not be ruled out and therefore, the same was disallowable. (AY. 2010-11)
ACIT v. Rohit Kochar (2018) 68 ITR 67 (SN) (Delhi) (Trib.)
S. 37(1) : Business expenditure–Disproportionate increase in expenses-Disallowance of 10% of the business promotion expenses is held to be justified.