ITAT restricts adhoc addition for freight expenses to 5%

Latish Chandar Samnani Vs ITO (ITAT Pune) The issue in the present case is with respect to disallowance of freight for expenses. The Assessing Officer had disallowed the expenses at 20% on adhoc basis which was restricted to 10% by CIT(A). Before us, it is assessee’s submissions that if the addition is restricted to 5% freight expenses, it would be acceptable to the assessee. Considering the totality of the facts and in view of the alternate submission of the Ld.AR, we direct that the disallowance be restricted to 5% of freight expenses. We thus, direct accordingly. Thus, ground raised by th...