Assessing Officer's arbitrary 10% disallowance overturned for breaching statutory procedure, violating Rule of Law principle.

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....Ad-hoc disallowance - the AO has not followed the procedure prescribed by the statute and therefore, he violated the principle of “Rule of Law” and the action of the AO is arbitrary and therefore, the ad-hoc disallowance of 10% made by the AO cannot be allowed. - AT....