ITAT Deletes Rs. 2.97 Crore Bogus Expense Disallowance, Upholds 10% for Lack of Records

DCIT Vs Dhar Construction Company (ITAT Kolkata)  Income Tax Appellate Tribunal (ITAT), Kolkata Bench, has partially allowed an appeal filed by the Revenue Department against Dhar Construction Company for the Assessment Year 2018-19. The Tribunal significantly reduced a Rs 2.97 crore addition made by the Assessing Officer (AO) under Section 69C (unexplained expenditure) but sustained 10% of the disallowance due to the assessee’s failure to produce primary supporting documents like bills and vouchers. The case originated when the AO disallowed Rs 2.97 crore claimed as expenditure by Dhar...