No expense disallowance based on mere Reduction in Revenue sharing

DCIT Vs Max Medical Services ltd. (ITAT Delhi) The issue under consideration is whether disallowance of the expenses only on the basis that there was reduction in the sharing of the revenue in comparison to the earlier years is justified in law? ITAT states that the AO made the disallowance of the expenses only on this basis that there was reduction in the sharing of the revenue in comparison to the earlier years, no other reasons has been given. In the instant case, it is also noticed that there was increase in the income earned by the assessee in comparison to the earlier year i.e. 53% more ...