ITAT directs AO to follow rule of Consistency while disallowing expenses

Travancore Textiles P. Ltd. Vs ITO (ITAT Chennai) The Assessing Officer has assessed interest income under the head income from other sources and further disallowed total expenditure incurred at Head Office on the ground that said expenditure is relatable to agricultural operations of the assesse. We find that the Assessing Officer is following different method of apportionment of expenses for each year. In the earlier financial year, he has apportioned expenses in the ratio of agricultural income and non-agricultural income and for current financial year, he has disallowed total expenses incu...