Ad-Hoc 10% Expense Disallowance Deleted: ITAT Says AO Cannot Make Additions on Pure Guesswork

ITO Vs Bhandari Automobiles Private Limited (ITAT Kolkata) Ad-Hoc 10% Expense Disallowance Deleted: ITAT Says AO Cannot Make Additions on Pure Guesswork The Kolkata ITAT upheld deletion of massive ad-hoc disallowance of ₹2.23 crore made against Bhandari Automobiles Private Ltd., holding that the Assessing Officer cannot arbitrarily disallow expenses without identifying specific defects or inflation in expenditure. The assessee, an authorized dealer of Tata Motors and Maruti Suzuki vehicles, was engaged in vehicle sales, servicing, repairs, spare parts and lubricant business. During scrutiny ...