Karnataka HC Rejects Ad Hoc Expenditure Disallowance as Books of Account were accepted

Mukesh Gupta Vs DCIT (Karnataka High Court) The assessee filed two appeals before the Karnataka High Court raising two questions of law: (i) whetherher the Income Tax Appellate Tribunal (ITAT) was justified in holding that there was no business income for Assessment Year (AY) 2012-13 despite the assessee having returned professional income and offered creditors to tax, and (ii) whether the ITAT was justified in upholding an ad hoc disallowance of 10% of expenditure. The assessee contended that the ITAT had arbitrarily held that there was no business income without recording cogent reasons. Reg...