ITAT Delhi Reduces Ad Hoc Disallowance from 10% to 4%

Biolife Medical Pvt. Ltd Vs ACIT (ITAT Delhi) Income Tax Appellate Tribunal (ITAT), Delhi bench, has partially allowed an appeal by Biolife Medical Pvt. Ltd., reducing an ad hoc disallowance on expenses from 10% to 4%. The ruling, pronounced on June 27, 2025, addresses a dispute over a Rs. 17,13,608/- addition by the Assessing Officer (AO) for Assessment Year 2017-18, covering employee benefits, power, fuel, and repairs. Biolife Medical had argued the AO’s 10% disallowance was based on presumptions, lacking adverse material or evidence. The company also raised a procedural concern, stati...