https://www.taxtmi.com/caselaws?id=469801 Business expenditure under section 37(1) cannot be disallowed on the basis of general search statements or suspicion without specific incriminating material. The record showed no rejection of books, no adverse financial evidence, and no finding that the claimed expenses were bogus, inflated, or unrelated to business. Routine salary, rent, administrative and compliance expenses were accepted as genuine, and the absence of fresh facts also meant the earlier accepted treatment should have been maintained under the rule of consistency. On that basis, the sustained disallowance was held unsustainable and deleted. en-us Thu, 21 May 2026 00:00:00 +0530 Fri, 03 Jul 2026 19:00:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=469801 Business expenditure under section 37(1) cannot be disallowed on the basis of general search statements or suspicion without specific incriminating material. The record showed no rejection of books, no adverse financial evidence, and no finding that the claimed expenses were bogus, inflated, or unrelated to business. Routine salary, rent, administrative and compliance expenses were accepted as genuine, and the absence of fresh facts also meant the earlier accepted treatment should have been maintained under the rule of consistency. On that basis, the sustained disallowance was held unsustainable and deleted. Case-Laws Income Tax Thu, 21 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=469801