Expenditure cannot be disallowed merely on the ground that they are on higher side

Aerens Motels & Resorts Vs. DCIT (ITAT Delhi)

There is no dispute to the fact that the expenditure on horticulture and other heads was incurred for the purpose of business. The assessee has also furnished necessary details pertaining to such expenses incurred. Similar expenses were also allowed by the department in the last year. The Assessing Officer had disallowed the entire expenditure on horticulture and out of other heads, i.e. business promotion, consumable stores, miscellaneous expenses and repair

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