https://www.taxtmi.com/caselaws?id=782373 ITAT Chennai dismissed the Revenue's appeal and upheld the CIT(A)'s deletion of addition for alleged bogus wage expenditure for AY 2022-23. The AO had treated cash entries marked "MD Personal" as personal withdrawals of the managing director and disallowed about Rs. 15.80 crore on an apportionment basis, without rejecting the books under s.145 or establishing a cash trail, fictitious recipients, or parallel accounts. ITAT held that private notings and self-made vouchers, without corroborative evidence, cannot justify treating genuine labour-intensive business wages as bogus, especially where the declared net profit rate (12.04%) is consistent with earlier years and the addition would yield an abnormally high margin (22.88%). Finding no infirmity in the CIT(A)'s order, ITAT sustained it in full. en-us Tue, 11 Nov 2025 00:00:00 +0530 Fri, 28 Nov 2025 08:24:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=782373 ITAT Chennai dismissed the Revenue's appeal and upheld the CIT(A)'s deletion of addition for alleged bogus wage expenditure for AY 2022-23. The AO had treated cash entries marked "MD Personal" as personal withdrawals of the managing director and disallowed about Rs. 15.80 crore on an apportionment basis, without rejecting the books under s.145 or establishing a cash trail, fictitious recipients, or parallel accounts. ITAT held that private notings and self-made vouchers, without corroborative evidence, cannot justify treating genuine labour-intensive business wages as bogus, especially where the declared net profit rate (12.04%) is consistent with earlier years and the addition would yield an abnormally high margin (22.88%). Finding no infirmity in the CIT(A)'s order, ITAT sustained it in full. Case-Laws Income Tax Tue, 11 Nov 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=782373