https://www.taxtmi.com/caselaws?id=783887 Whether estimated disallowance of business expenditure (advertisement, truck freight, crossing charges to branches, and printing/stationery) was justified and, if so, to what extent, was the dominant issue. The ITAT held that in a transport business commercial expediency of such expenses cannot be ruled out, but it is equally settled that claimed expenditure must be supported by demonstrative evidence; the taxpayer's evidentiary support was deficient, permitting an inference that the expenses were not fully vouched or justified. Hence, an estimated disallowance could not be rejected, though the AO's estimation was excessive. The ITAT directed the AO to restrict the disallowance to 50% of the amounts disallowed (for each head), partly allowing the Revenue's appeal. en-us Fri, 19 Dec 2025 00:00:00 +0530 Wed, 24 Dec 2025 07:51:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=783887 Whether estimated disallowance of business expenditure (advertisement, truck freight, crossing charges to branches, and printing/stationery) was justified and, if so, to what extent, was the dominant issue. The ITAT held that in a transport business commercial expediency of such expenses cannot be ruled out, but it is equally settled that claimed expenditure must be supported by demonstrative evidence; the taxpayer's evidentiary support was deficient, permitting an inference that the expenses were not fully vouched or justified. Hence, an estimated disallowance could not be rejected, though the AO's estimation was excessive. The ITAT directed the AO to restrict the disallowance to 50% of the amounts disallowed (for each head), partly allowing the Revenue's appeal. Case-Laws Income Tax Fri, 19 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=783887