AO cannot disallow expenses on estimation basis without verification of genuineness

Brief of the Case ITAT Jaipur held In the case of Balbir Singh vs, ACIT that it is not open for the AO to make addition on estimation basis without verifying that said expenses are genuine or not. Mere fact that payments were made in cash on self made vouchers, not a conclusive evidence to disallow the expenses. In the give case, the Assessing Officer had not brought on record any adverse evidence that expenses are not genuine. He simply disallowed the expenses on estimate basis, which is not allowed. Facts of the Case Disallowance of salary payment The assessee is a real estate agent trading ...