Adhoc Disallowance on Surmises Without Rejecting Books is unsustainable

ACIT Vs Merchant Agri Global Private Limited (ITAT Mumbai) The case of ACIT Vs Merchant Agri Global Private Limited was brought before the Mumbai ITAT. The appellant sought to overturn the order passed by the CIT(A) regarding the adhoc disallowance of expenses without rejecting the books of account. The appellant, Merchant Agri Global Private Limited, declared a total income of Rs. 3,22,87,840 for the assessment year 2017-18. However, during scrutiny, the Assessing Officer (AO) observed discrepancies in the claimed direct expenses amounting to Rs. 78,55,48,913. Despite explanations from the as...