Held that the ad hoc disallowances made without pointing out any specific instance with respect to any of the disallowance and for the general reason of preventing any possible revenue leakage, could not be upheld. The assessee could not be subjected to increased tax demand only on the presumption that there could have been revenue leakage, when the assessee had duly explained each and every expenditure. Disallowance is deleted. (AY.2013-14)
Sadana Electric Store v. Dy. CIT (2024)116 ITR 33 (SN)(Lucknow)(Trib)
S.37(1): Business expenditure-Ad-hoc disallowance-Salary-business promotion expenses, commission,miscellaneous expenses, service and maintenance expenses, telephone,-Repair to building-Books of account not rejected-Disallowance is deleted. [S. 143(3)]