Adhoc 30% Expense Disallowance Deleted – No Specific Defects or Verification by AO: ITAT Chandigarh

DCIT Vs Theon Pharmaceuticals Limited (ITAT Chandigarh) Adhoc 30% Expense Disallowance Deleted – No Specific Defects or Verification by AO – ITAT Chandigarh ITAT dismissed Revenue’s appeal and upheld deletion of adhoc disallowance of ₹3.45 crore (30% of ₹11.52 crore expenses) made by the AO. Tribunal noted that the assessee, a large pharma exporter with turnover exceeding ₹457 crore, had maintained audited books and furnished party-wise details and sample invoices. The AO failed to identify specific defects, segregate discrepant invoices or conduct independent verification u/s 133(...