https://www.taxtmi.com/caselaws?id=203246 The High Court held that Section 40A(3) applies to block assessment proceedings under Chapter XIV-B of the Income-tax Act, 1961. Disallowance under Section 40A(3) is permissible even when income is estimated based on the GP rate, if expenditures are legally impermissible and not covered under Rule 6DD. The Assessing Officer was justified in disallowing expenditures incurred in contravention of Section 40A(3), and the setting aside of the disallowance by the CIT(A) and the Tribunal was deemed unsustainable. Appeals were allowed in favor of the revenue, upholding the disallowance made by the Assessing Officer. en-us Thu, 10 Mar 2011 00:00:00 +0530 Sat, 14 May 2011 09:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=203246 The High Court held that Section 40A(3) applies to block assessment proceedings under Chapter XIV-B of the Income-tax Act, 1961. Disallowance under Section 40A(3) is permissible even when income is estimated based on the GP rate, if expenditures are legally impermissible and not covered under Rule 6DD. The Assessing Officer was justified in disallowing expenditures incurred in contravention of Section 40A(3), and the setting aside of the disallowance by the CIT(A) and the Tribunal was deemed unsustainable. Appeals were allowed in favor of the revenue, upholding the disallowance made by the Assessing Officer. Case-Laws Income Tax Thu, 10 Mar 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=203246