https://www.taxtmi.com/caselaws?id=774812 The ITAT Delhi upheld the CIT(A)'s decision to delete the AO's adhoc 50% disallowance of sub-contract work expenses and excavation/compaction expenses claimed as labour expenses. The AO made disallowances without specifying any basis, which the tribunal found untenable. Since the AO accepted 50% of the expenses, the tribunal saw no reason to interfere with CIT(A)'s decision allowing the remaining expenses. The tribunal emphasized that adhoc disallowances without rejecting books of accounts are legally unsustainable. Appeal decided against revenue. en-us Wed, 25 Jun 2025 00:00:00 +0530 Tue, 15 Jul 2025 08:39:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774812 The ITAT Delhi upheld the CIT(A)'s decision to delete the AO's adhoc 50% disallowance of sub-contract work expenses and excavation/compaction expenses claimed as labour expenses. The AO made disallowances without specifying any basis, which the tribunal found untenable. Since the AO accepted 50% of the expenses, the tribunal saw no reason to interfere with CIT(A)'s decision allowing the remaining expenses. The tribunal emphasized that adhoc disallowances without rejecting books of accounts are legally unsustainable. Appeal decided against revenue. Case-Laws Income Tax Wed, 25 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774812