Expenses Cannot Be Disallowed Without Assessee’s Claim in the Relevant Year

Sunil Dhirubhai Patel Vs ITO (ITAT Ahmedabad) In a recent case before the Income Tax Appellate Tribunal (ITAT) in Ahmedabad, Sunil Dhirubhai Patel contested the addition of Rs. 1,74,00,000/- as bogus expenses in his assessment under s. 143(3) r.w.s. 147 of the Income Tax Act, 1961. The crux of the matter lies in the disallowance of expenses without the assessee’s claim in the relevant year. Background: Sunil Dhirubhai Patel, an individual deriving income from construction and land development, faced scrutiny over alleged bogus expenses related to labor bills from specific parties. The As...