ITAT Limits Disallowance Percentages for Business Expenses

Crescent Chemicals Vs ITO (ITAT Mumbai) Introduction: The recent order of the Income Tax Appellate Tribunal (ITAT) Mumbai in the case of Crescent Chemicals Vs ITO has significant implications for the disallowance percentages of various business expenses. The appeal arises from the order of the National Faceless Appeal Centre (NFAC) Delhi/CIT(A) concerning an ad hoc disallowance amounting to Rs. 1,66,180/- for Business Promotion, Sundry Expenses, Office Maintenance Charges, and Conveyance. The ITAT’s directive to limit disallowance percentages is a crucial development in the ongoing dispu...