https://www.taxtmi.com/caselaws?id=448786 The ITAT Ahmedabad ruled in favor of the assessee, holding that the CIT(A)'s disallowances of travelling expenses (20%), staff welfare expenses (10%), and interest expenses on work-in-progress violated principles of natural justice by not providing hearing opportunities or confronting the assessee with findings. The tribunal found that while CIT(A) has powers under section 251 to expand assessment scope, this cannot extend to discovering new income sources. The disallowances of staff welfare and interest expenses were deemed beyond CIT(A)'s statutory powers and were directed to be deleted. en-us Wed, 24 Jan 2024 00:00:00 +0530 Tue, 30 Jan 2024 08:51:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=448786 The ITAT Ahmedabad ruled in favor of the assessee, holding that the CIT(A)'s disallowances of travelling expenses (20%), staff welfare expenses (10%), and interest expenses on work-in-progress violated principles of natural justice by not providing hearing opportunities or confronting the assessee with findings. The tribunal found that while CIT(A) has powers under section 251 to expand assessment scope, this cannot extend to discovering new income sources. The disallowances of staff welfare and interest expenses were deemed beyond CIT(A)'s statutory powers and were directed to be deleted. Case-Laws Income Tax Wed, 24 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=448786