https://www.taxtmi.com/caselaws?id=775412 ITAT Mumbai held that the AO's 50% disallowance of expenses was ad-hoc and unsupported. The assessee demonstrated business activity with detailed audited financials, expense breakups, and ledger accounts. Expenses including depreciation, legal and professional fees, bank charges, salaries, printing, traveling, and advertisement related to business purposes were allowed in full under Sections 32 and 37(1). For other expenditures lacking verifiable details, the disallowance was restricted to 10%. Consequently, the total disallowance was limited to INR 9,494, and the remaining INR 10,00,456 was deleted. Grounds raised by the assessee were partly allowed. en-us Mon, 02 Jun 2025 00:00:00 +0530 Fri, 25 Jul 2025 08:28:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775412 ITAT Mumbai held that the AO's 50% disallowance of expenses was ad-hoc and unsupported. The assessee demonstrated business activity with detailed audited financials, expense breakups, and ledger accounts. Expenses including depreciation, legal and professional fees, bank charges, salaries, printing, traveling, and advertisement related to business purposes were allowed in full under Sections 32 and 37(1). For other expenditures lacking verifiable details, the disallowance was restricted to 10%. Consequently, the total disallowance was limited to INR 9,494, and the remaining INR 10,00,456 was deleted. Grounds raised by the assessee were partly allowed. Case-Laws Income Tax Mon, 02 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775412