https://www.taxtmi.com/caselaws?id=383514 ITAT Mumbai reiterated that additions for low gross profit and ad hoc administrative expense disallowance were sustainable where the assessee failed to produce bills, vouchers, stock records or transport evidence, allowing rejection of books and estimation of gross profit on earlier-year results. It also upheld deletion of interest disallowance on incremental working capital loans because the record showed the borrowings were broadly commensurate with current assets and no material proved diversion of funds for non-business use or to sister concerns. The tribunal further applied the settled rule that section 14A read with Rule 8D cannot be invoked when no exempt income was earned or receivable in the relevant year, so that disallowance was deleted. en-us Wed, 17 Jul 2019 00:00:00 +0530 Wed, 24 Jul 2019 12:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=383514 ITAT Mumbai reiterated that additions for low gross profit and ad hoc administrative expense disallowance were sustainable where the assessee failed to produce bills, vouchers, stock records or transport evidence, allowing rejection of books and estimation of gross profit on earlier-year results. It also upheld deletion of interest disallowance on incremental working capital loans because the record showed the borrowings were broadly commensurate with current assets and no material proved diversion of funds for non-business use or to sister concerns. The tribunal further applied the settled rule that section 14A read with Rule 8D cannot be invoked when no exempt income was earned or receivable in the relevant year, so that disallowance was deleted. Case-Laws Income Tax Wed, 17 Jul 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=383514