Held that the ad hoc disallowance on percentage basis of the expenses claimed by the assessee was arbitrary and not sustainable. Relied on National Industrial corp. Ltd. v. CIT (2002) 258 ITR 575 (Delhi) (HC) (AY. 2011-12)
Kaneria Granito Ltd. v. Dy. CIT (2021) 88 ITR 7 (SN) (Surat)(Trib.)
S. 144 : Best judgment assessment-Ad-hoc disallowance on percentage basis-Books of account audited by chartered accountant-Ad-hoc disallowance was deleted [S. 37(1), 145(3)]