ITAT Chennai: Ad-hoc Disallowance of Expenses Not Permissible Without Pointing Specific Defects in Books

Gaura Nitai Seva Trust Vs ITO (ITAT Chennai) ITAT Chennai: Ad-hoc Disallowance of Expenses Not Permissible Without Pointing Specific Defects in Books The assessee, Madurai District Co-operative Milk Producers Union Ltd., filed its return declaring income of ₹17.39 crore. During assessment u/s 143(3) r.w.s. 144B, the AO made ad-hoc disallowance of 15% of administrative overhead expenses (₹34.01 crore) and purchase expenses (₹24.13 crore) on the ground that the assessee failed to produce complete bills and vouchers. The disallowance resulted in an addition of ₹8.72 crore to the income. O...