https://www.taxtmi.com/caselaws?id=774243 ITAT Chandigarh allowed the assessee's appeal regarding income characterization and business expense disallowance. The AO had recharacterized business income as "income from other sources" and disallowed business expenses, claiming no genuine business activity existed. The tribunal held that without contrary evidence or incriminating material from search proceedings, the AO's recharacterization was unsustainable. Revenue from identifiable clients under valid invoices cannot be dismissed on mere assumptions. The tribunal applied the consistency principle, noting similar treatment was accepted in previous years. Business expenses were allowed as the assessee had consistently engaged in IT and networking business, with audited accounts supporting genuine operations. en-us Wed, 02 Jul 2025 00:00:00 +0530 Sat, 05 Jul 2025 08:47:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774243 ITAT Chandigarh allowed the assessee's appeal regarding income characterization and business expense disallowance. The AO had recharacterized business income as "income from other sources" and disallowed business expenses, claiming no genuine business activity existed. The tribunal held that without contrary evidence or incriminating material from search proceedings, the AO's recharacterization was unsustainable. Revenue from identifiable clients under valid invoices cannot be dismissed on mere assumptions. The tribunal applied the consistency principle, noting similar treatment was accepted in previous years. Business expenses were allowed as the assessee had consistently engaged in IT and networking business, with audited accounts supporting genuine operations. Case-Laws Income Tax Wed, 02 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774243