https://www.taxtmi.com/caselaws?id=770322 ITAT Mumbai allowed the appeal regarding business promotion expenses and cash discount disallowances. The AO had disallowed 30% of business promotion expenses and 20% of cash discount expenses on adhoc basis without identifying specific defects. During appellate proceedings, the assessee furnished complete bills and vouchers. The AO's remand report confirmed all transactions were verifiable and genuine. ITAT held that adhoc disallowances without evidence were unjustified, particularly given reasonable expense levels relative to turnover and it being the assessee's first business year. Both disallowances were directed to be deleted. en-us Tue, 25 Mar 2025 00:00:00 +0530 Fri, 09 May 2025 09:12:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=770322 ITAT Mumbai allowed the appeal regarding business promotion expenses and cash discount disallowances. The AO had disallowed 30% of business promotion expenses and 20% of cash discount expenses on adhoc basis without identifying specific defects. During appellate proceedings, the assessee furnished complete bills and vouchers. The AO's remand report confirmed all transactions were verifiable and genuine. ITAT held that adhoc disallowances without evidence were unjustified, particularly given reasonable expense levels relative to turnover and it being the assessee's first business year. Both disallowances were directed to be deleted. Case-Laws Income Tax Tue, 25 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=770322