https://www.taxtmi.com/caselaws?id=786172 Adhoc reduction of claimed business expenses cannot be sustained where the assessee produced supporting evidence and the assessing officer did not record specific defects; therefore arbitrary 10% disallowance was deleted. Separately, interest income received under court order in the year was matched with payment made to the lender; since the related outflow was incurred and payment was not disputed, the corresponding interest expenditure was allowed against the offered income. The analysis emphasizes that increases in expenditure quantum alone do not justify nondocumentary adhoc disallowance and that corresponding expenditure linked to recognised income must be permitted. en-us Thu, 05 Feb 2026 00:00:00 +0530 Sat, 07 Feb 2026 07:19:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=786172 Adhoc reduction of claimed business expenses cannot be sustained where the assessee produced supporting evidence and the assessing officer did not record specific defects; therefore arbitrary 10% disallowance was deleted. Separately, interest income received under court order in the year was matched with payment made to the lender; since the related outflow was incurred and payment was not disputed, the corresponding interest expenditure was allowed against the offered income. The analysis emphasizes that increases in expenditure quantum alone do not justify nondocumentary adhoc disallowance and that corresponding expenditure linked to recognised income must be permitted. Case-Laws Income Tax Thu, 05 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=786172