https://www.taxtmi.com/caselaws?id=783239 The ITAT Hyderabad allowed the assessee's appeal, deleting the 10% ad hoc disallowance of commission and land development expenses. It held that, since the AO had not rejected the regularly maintained books of account and the assessee had produced complete particulars of commission payments (including names, addresses, PAN, banking channels, and TDS details), an arbitrary percentage disallowance was impermissible. Similarly, the 10% disallowance of land development expenses was set aside as the AO neither identified specific unverifiable items nor demonstrated incorrectness of the expenditure. The Tribunal ruled that, absent concrete defects, business expenditure incurred wholly and exclusively for business cannot be disallowed on an ad hoc basis. en-us Wed, 29 Oct 2025 00:00:00 +0530 Fri, 12 Dec 2025 08:55:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=783239 The ITAT Hyderabad allowed the assessee's appeal, deleting the 10% ad hoc disallowance of commission and land development expenses. It held that, since the AO had not rejected the regularly maintained books of account and the assessee had produced complete particulars of commission payments (including names, addresses, PAN, banking channels, and TDS details), an arbitrary percentage disallowance was impermissible. Similarly, the 10% disallowance of land development expenses was set aside as the AO neither identified specific unverifiable items nor demonstrated incorrectness of the expenditure. The Tribunal ruled that, absent concrete defects, business expenditure incurred wholly and exclusively for business cannot be disallowed on an ad hoc basis. Case-Laws Income Tax Wed, 29 Oct 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=783239