ITAT Deletes Expense Disallowance as Revenue Failed to Prove Personal Use

News Laundry Media Private Limited Vs DCIT (ITAT Delhi) The ITAT Delhi held that an ad hoc disallowance of business promotion, petrol, and tour & travel expenses under Section 37(1) cannot be sustained merely on suspicion that personal use may be involved. The assessee, a media company engaged in motion picture, radio, television, and related activities, had furnished ledger accounts, invoices, vouchers, flight tickets, restaurant bills, and other supporting documents to substantiate the expenses. The Assessing Officer disallowed 25% of the expenditure on the ground that the exact details ...