https://www.taxtmi.com/caselaws?id=467981 Ad hoc disallowance of purchases and business expenses is unsustainable where audited books of account, tax audit material, quantitative details, invoices and other supporting records are produced and no specific defect or falsity is identified. Estimation-based addition is not permissible unless the books are first found to be incorrect, incomplete or unreliable and are rejected in accordance with law. In the absence of rejection under section 145(3) or any cogent basis showing violation of section 37(1), a percentage disallowance made purely on an ad hoc footing cannot stand. en-us Thu, 28 Aug 2025 00:00:00 +0530 Fri, 10 Apr 2026 10:25:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=467981 Ad hoc disallowance of purchases and business expenses is unsustainable where audited books of account, tax audit material, quantitative details, invoices and other supporting records are produced and no specific defect or falsity is identified. Estimation-based addition is not permissible unless the books are first found to be incorrect, incomplete or unreliable and are rejected in accordance with law. In the absence of rejection under section 145(3) or any cogent basis showing violation of section 37(1), a percentage disallowance made purely on an ad hoc footing cannot stand. Case-Laws Income Tax Thu, 28 Aug 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=467981