https://www.taxtmi.com/caselaws?id=438467 Estimated disallowances under the Income-tax Act were tested against primary records, remand findings and the absence of specific defects. Rejection of books for alleged excess raw material consumption was not supported by adverse material, and the addition was deleted. Foreign exchange fluctuation loss on capital goods was treated under capital cost adjustment principles, not as a revenue expense, and the disallowance was deleted. Ad hoc disallowances for repair and maintenance, royalty and job work expenses were deleted where supporting evidence and verification were available, while the guest house disallowance was partly sustained because full vouchers were not produced. en-us Tue, 30 May 2023 00:00:00 +0530 Thu, 01 Jun 2023 08:07:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=438467 Estimated disallowances under the Income-tax Act were tested against primary records, remand findings and the absence of specific defects. Rejection of books for alleged excess raw material consumption was not supported by adverse material, and the addition was deleted. Foreign exchange fluctuation loss on capital goods was treated under capital cost adjustment principles, not as a revenue expense, and the disallowance was deleted. Ad hoc disallowances for repair and maintenance, royalty and job work expenses were deleted where supporting evidence and verification were available, while the guest house disallowance was partly sustained because full vouchers were not produced. Case-Laws Income Tax Tue, 30 May 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=438467