Dismissing the appeal of the revenue the Court held that the Tribunal was justified in holding that no ad hoc disallowances of 10% of claim in respect of bricks, machinery repairs, cartage , labour expenses etc can be made without rejecting the books of account and also in the past , consistently such expenses were allowed in scrutiny assessments .( AY. 2010-11)
PCIT v. R. G. Buildwell Engineers Ltd ( 2018) 99 taxmann.com 283 / 259 Taxman 371 ( Delhi) (HC) Editorial: SLP of revenue is dismissed , PCIT v. R. G. Buildwell Engineers Ltd ( 2018) 259 Taxman 370 (SC)
S.37(1): Business expenditure – Ad hoc disallowance of 10% claim – Bricks, machinery repairs, cartage , labour expenses- No ad hoc disallowances can be made without rejecting the books of account and also allowed in the past consistently such expenses in scrutiny assessments . [ S.143(3), 144 ]
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