https://www.taxtmi.com/caselaws?id=761981 ITAT Lucknow held that ad-hoc disallowances of business expenses without specific instances or findings cannot be sustained. The tribunal ruled that revenue authorities cannot impose increased tax demands based on presumptions of possible revenue leakage when the assessee provided explanations for disputed expenditures. Both lower authorities failed to properly consider the assessee's explanations and proceeded hastily with disallowances. The appeal was decided in favor of the assessee, with the tribunal reaffirming that such blanket disallowances are bad in law. en-us Tue, 19 Nov 2024 00:00:00 +0530 Thu, 21 Nov 2024 09:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=761981 ITAT Lucknow held that ad-hoc disallowances of business expenses without specific instances or findings cannot be sustained. The tribunal ruled that revenue authorities cannot impose increased tax demands based on presumptions of possible revenue leakage when the assessee provided explanations for disputed expenditures. Both lower authorities failed to properly consider the assessee's explanations and proceeded hastily with disallowances. The appeal was decided in favor of the assessee, with the tribunal reaffirming that such blanket disallowances are bad in law. Case-Laws Income Tax Tue, 19 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=761981