https://www.taxtmi.com/caselaws?id=468747 Unsubstantiated expenditure claims may warrant an ad hoc disallowance, but the estimate must remain fair and reasonable where neither comparable material nor past or subsequent business trends support a higher percentage. Commission expenditure and conveyance, telephone, travelling and shop expenses were not adequately supported by evidence; however, the higher lump-sum disallowances lacked an evidentiary basis. The disallowances were therefore restricted to 5% for each disputed expenditure head, granting partial relief. The governing principle is that unsupported expenditure cannot be wholly accepted, while arbitrary estimation without relevant comparative or trend data cannot be sustained at an excessive level. en-us Wed, 05 Feb 2025 00:00:00 +0530 Tue, 19 May 2026 18:56:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=468747 Unsubstantiated expenditure claims may warrant an ad hoc disallowance, but the estimate must remain fair and reasonable where neither comparable material nor past or subsequent business trends support a higher percentage. Commission expenditure and conveyance, telephone, travelling and shop expenses were not adequately supported by evidence; however, the higher lump-sum disallowances lacked an evidentiary basis. The disallowances were therefore restricted to 5% for each disputed expenditure head, granting partial relief. The governing principle is that unsupported expenditure cannot be wholly accepted, while arbitrary estimation without relevant comparative or trend data cannot be sustained at an excessive level. Case-Laws Income Tax Wed, 05 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=468747