ITAT Hyderabad: 100% Disallowance of Promotion Expenses Unjustified; 50% Adhoc Disallowance Sustained

Sai Ganesh Educational Society Vs ITO (ITAT Hyderabad) ITAT Hyderabad: 100% Disallowance of Promotion Expenses Unjustified; 50% Adhoc Disallowance Sustained In this case, the assessee society claimed sales promotion expenses of ₹25.53 lakh, which had increased sharply by about 495% compared to the previous year. The AO disallowed the entire expenditure due to lack of proper supporting evidence such as bills, PAN details, and verifiable vouchers, and the CIT(A) upheld the full disallowance. Before the ITAT, it was argued that such expenses were inherent to the assessee’s educational promoti...