Ad hoc disallowance without finding any defect in books not justified: ITAT Kolkata

Jinraj Paper Udyog Pvt. Limited Vs ITO (ITAT Kolkata) Income Tax Appellate Tribunal (ITAT), Kolkata Bench, in the case of Jinraj Paper Udyog Pvt. Ltd. vs ITO, has ruled in favour of the assessee for Assessment Year 2014–15 by deleting an ad hoc disallowance of indirect expenses. The appeal arose from the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, which had partially upheld a 10% disallowance of indirect expenses originally estimated at 20% by the Assessing Officer (AO). The tribunal’s decision, pronounced on 17 April 2023, undersco...