Business Expenses Cannot Be disallowed on Mere Suspicion: ITAT Mumbai

DCIT-3(1)(1) Vs Riverside Industries Private Limited (ITAT Mumbai) The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT), in DCIT-3(1)(1) v. Riverside Industries Private Limited, dismissed the Revenue’s appeal and upheld the order of the Commissioner of Income Tax (Appeals) deleting the disallowance of business development and business promotion expenses as well as allowing depreciation on motor cars used for business purposes. The Tribunal held that business expenditure cannot be disallowed merely on the basis of suspicion, assumptions, or surmises without bringing any adverse ev...