10% Expense Addition Set Aside for Absence of Evidence-Based Findings

ACIT (Exemption) Vs Ramkrishna Seva Mandal Anand (ITAT Ahmedabad) Ad-hoc Disallowance of Trust Expenditure Set Aside: ITAT Ahmedabad Upholds Deletion of 10% Expense Addition The Ahmedabad Bench of the ITAT dismissed the Revenue’s appeal and upheld the order of the CIT(A) deleting an ad-hoc disallowance of ₹3.96 crore (10% of total expenses) made in the case of Shree Ramkrishna Seva Mandal for AY 2023-24. The assessee, a charitable trust registered under section 12A and engaged in managing 35 educational institutions, had disclosed consolidated income and expenditure of all units. The Tribu...