https://www.taxtmi.com/highlights?id=92988 ITAT held that the adhoc addition of 10% of turnover based on service-tax receipts was unsustainable: the assessee had filed a reconciliation and supporting documents demonstrating legitimate differences between service-tax receipts (advances) and gross receipts for income-tax purposes, and AO and CIT(A) erred in making unreasoned, estimation-based additions. The Tribunal deleted the estimated profit addition and confirmed that books were not rejected nor additional evidence improperly excluded. Disallowance of sales-promotion expenditure was reversed for lack of material showing non-business purpose. Disallowance under section 14A was also deleted on findings that the assessee earned no exempt income in the year. en-us Wed, 01 Oct 2025 09:07:53 +0530 Wed, 01 Oct 2025 09:07:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=92988 ITAT held that the adhoc addition of 10% of turnover based on service-tax receipts was unsustainable: the assessee had filed a reconciliation and supporting documents demonstrating legitimate differences between service-tax receipts (advances) and gross receipts for income-tax purposes, and AO and CIT(A) erred in making unreasoned, estimation-based additions. The Tribunal deleted the estimated profit addition and confirmed that books were not rejected nor additional evidence improperly excluded. Disallowance of sales-promotion expenditure was reversed for lack of material showing non-business purpose. Disallowance under section 14A was also deleted on findings that the assessee earned no exempt income in the year. Highlights Income Tax Wed, 01 Oct 2025 09:07:53 +0530 https://www.taxtmi.com/highlights?id=92988