Selective Year-to-Year Expense Comparison Can’t Justify Ad Hoc Disallowance Without Defects

Wizcraft Entertainment Agency Private Limited Vs ITO (ITAT Mumbai) The appeal by the Department and the cross-objection by the assessee were decided by the Income Tax Appellate Tribunal, Mumbai against an order dated 30.06.2025 passed by the National Faceless Appeal Centre for Assessment Year 2022-23. In the Department’s appeal, the first issue concerned deletion of an addition of ₹15,77,52,570 arising from an ad hoc disallowance of expenses. The assessee, a resident corporate entity engaged in organizing entertainment events, concerts, and theatrical productions, had filed its return decl...