ITAT Mumbai: No Ad-hoc Disallowance Without Rejecting Books; Section 40(a)(ia) Relief If TDS Paid Before Return Due Date

Kunal Narendra Gupta Vs ITO (ITAT Mumbai) ITAT Mumbai: No Ad-hoc Disallowance Without Rejecting Books; Section 40(a)(ia) Relief If TDS Paid Before Return Due Date The ITAT Mumbai delivered a clear ruling that ad-hoc disallowance of expenses cannot be sustained unless books of accounts are rejected under Section 145(3). In this case, the Assessing Officer disallowed 10% of various expenses (travelling, telephone, vehicle, etc.) merely on presumption of personal use, without pointing out any defects in books. The Tribunal held such estimate-based disallowance is unsustainable in law when: Books...