Mumbai ITAT Deletes 10% Ad Hoc Business Expense Disallowance for Lack of Specific Defects

ACIT Vs Balmer Lawrie Van Leer Limited (ITAT Mumbai) Mumbai ITAT Deletes Ad Hoc 10% Disallowance of Business Expenses – No Addition Sustainable Without Specific Defects in Audited Books The Mumbai ITAT upheld the deletion of an ad hoc disallowance of ₹6.61 crore, being 10% of “Other Expenses”, holding that such an addition cannot be sustained merely because the Assessing Officer sought more details. The Tribunal noted that the assessee had furnished extensive details, including ledgers, sample invoices, and other supporting documents, and its books of account were duly audited ...