No addition if nexus exist between expenses incurred & purpose of business

Mahalaxmi Saws Pvt. Ltd. Vs ITO (ITAT Jaipur) Conclusion: Once it is established that there was nexus between the expenditure and purchase of the business (which need not necessarily be the business of the assessee itself) the Revenue could not justifiably claim to put itself in the arm-chair of the businessman or in the position of the board of directors and assume the role to decide how much was reasonable expenditure having regard to the circumstances of the case. Held: Assessee challenged the order of CIT(A) in confirming the disallowance of Rs. 24,486/- made out of expenses claimed in th...