https://www.taxtmi.com/caselaws?id=179182 The ITAT Mumbai upheld the CIT(A)'s decision to delete the adhoc disallowance of distribution expenses under section 37(1) of the Income Tax Act. The tribunal found that the adhoc disallowance made by the AO without seized material or evidence during the search was unjustified. It held that no additions based on estimates can be made during block assessments, in line with a similar ruling from the Hon'ble Calcutta High Court. Therefore, the appeal against the deletion of the addition of distribution expenses was dismissed on 18th October 2012. en-us Thu, 18 Oct 2012 00:00:00 +0530 Sat, 03 Jun 2017 12:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=179182 The ITAT Mumbai upheld the CIT(A)'s decision to delete the adhoc disallowance of distribution expenses under section 37(1) of the Income Tax Act. The tribunal found that the adhoc disallowance made by the AO without seized material or evidence during the search was unjustified. It held that no additions based on estimates can be made during block assessments, in line with a similar ruling from the Hon'ble Calcutta High Court. Therefore, the appeal against the deletion of the addition of distribution expenses was dismissed on 18th October 2012. Case-Laws Income Tax Thu, 18 Oct 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=179182