Survey-Based Suspicion Not Enough: AMP & Credit-Note Payments Allowed by ITAT

DCIT Vs Lotus Herbals Pvt. Ltd. (ITAT Delhi) Delhi ITAT ‘E’ Bench in DCIT, CC-20 vs Lotus Herbals Pvt Ltd (ITA Nos.2442 to 2445/Del/2023 for AYs 2013-14 to 2016-17 & ITA No.200/Del/2023 for AY 2019-20, order dated 23-12-2025) dismissed all five appeals of the Revenue, upholding the deletion of massive disallowances relating to Advertisement, Marketing & Promotion (AMP) expenses and salary paid through credit notes. The case arose out of reassessment and regular assessments where AO, relying heavily on survey findings and non-response to notices u/s 133(6), treated AMP expenses as b...