https://www.taxtmi.com/caselaws?id=776486 Under section 37(1) of the Income-tax Act, disallowance of regular business expenditure requires the assessee to show that the expense was wholly and exclusively for business purposes. Here, the assessee did not fully discharge that burden for salaries, rent, freight, and repairs and maintenance, but the Revenue also failed to cite comparable material showing the expenditure to be excessive or unreasonable. On that basis, the lower authorities' 50% disallowance was treated as excessive and was restricted on estimation to 10%, granting partial relief to the assessee. en-us Mon, 06 Jan 2025 00:00:00 +0530 Tue, 12 Aug 2025 08:32:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=776486 Under section 37(1) of the Income-tax Act, disallowance of regular business expenditure requires the assessee to show that the expense was wholly and exclusively for business purposes. Here, the assessee did not fully discharge that burden for salaries, rent, freight, and repairs and maintenance, but the Revenue also failed to cite comparable material showing the expenditure to be excessive or unreasonable. On that basis, the lower authorities' 50% disallowance was treated as excessive and was restricted on estimation to 10%, granting partial relief to the assessee. Case-Laws Income Tax Mon, 06 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=776486