Disallowance for plugging profit leakage cannot be supported: ITAT

Urban Infraprojects Pvt. Ltd. Vs ACIT (ITAT Kolkata)

In the present case, the assessee is is in the business of civil construction. The AO has disallowed ad-hoc 10% of operating and other expenses because the portions of the bills of self made debit vouchers are not verifiable.

ITAT states that, anyhow disallowing 10% of the expenditure on the ground that profit leakage has to be plugged cannot be supported. Keeping in view the facts and circumstances of the case, some disallowance of a ra

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