https://www.taxtmi.com/caselaws?id=775045 The ITAT Delhi allowed the appeal partly. For repairs and maintenance expenditure, the tribunal found that while the assessee's books were not rejected, only sample invoices were provided. Given the company reported a loss of Rs. 9.43 crores and had no logical reason to inflate expenses, the tribunal restricted disallowance to 10% of total repairs and maintenance expenses instead of the CIT(A)'s higher disallowance. Regarding travelling expenses, the tribunal noted the AO's figure of Rs. 12,99,869/- was unexplained when the assessee actually debited Rs. 7,48,290/-. The personal element assumption lacked evidence. The tribunal allowed 10% disallowance of actual expenses (Rs. 74,829/-). For sundry creditors addition under Section 41(1), the tribunal deleted the addition entirely. Since creditors were shown in the balance sheet as liabilities, there was no cessation of liability. The authorities failed to establish that deductions were claimed earlier and liabilities had ceased to exist, which is prerequisite for Section 41(1) application. en-us Wed, 16 Jul 2025 00:00:00 +0530 Fri, 18 Jul 2025 08:22:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775045 The ITAT Delhi allowed the appeal partly. For repairs and maintenance expenditure, the tribunal found that while the assessee's books were not rejected, only sample invoices were provided. Given the company reported a loss of Rs. 9.43 crores and had no logical reason to inflate expenses, the tribunal restricted disallowance to 10% of total repairs and maintenance expenses instead of the CIT(A)'s higher disallowance. Regarding travelling expenses, the tribunal noted the AO's figure of Rs. 12,99,869/- was unexplained when the assessee actually debited Rs. 7,48,290/-. The personal element assumption lacked evidence. The tribunal allowed 10% disallowance of actual expenses (Rs. 74,829/-). For sundry creditors addition under Section 41(1), the tribunal deleted the addition entirely. Since creditors were shown in the balance sheet as liabilities, there was no cessation of liability. The authorities failed to establish that deductions were claimed earlier and liabilities had ceased to exist, which is prerequisite for Section 41(1) application. Case-Laws Income Tax Wed, 16 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775045