TaxTMI 
TaxTMI 
2026 (3) TMI 1220
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Ld. CIT(A) erred in deleting the disallowance of Rs. 8,82.99.568/- (i.e., 20% of Rs. 44.14.97,840/-) made by the Assessing Officer out of "Other Expenses", without appreciating that the assessee failed to furnish documentary evidence in support of the expenses claimed, despite specific opportunity provided during assessment proceedings. 2. The Ld. CIT(A) erred in holding that the disallowance was made on an ad-hoc basis without any basis, ignoring the fact that the disallowance was necessitated due to non-submission of verifiable supporting documents by the assessee, and was made on a reasonable and conservative estimation in the absence of proper justification of the expenditure. 2. Brief facts of the case are that the assesse....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssessment proceedings, including party-wise break-up of expenses, nature of services availed, copies of ledger accounts, invoices, proof of payment, and details of tax deducted at source wherever applicable. It was submitted that the expenditure comprised, inter alia, collection aggregator charges, service fees, commission, professional and legal fees, rent, and software expenses, all incurred in the ordinary course of business. The assessee further submitted that its books of account were duly audited under section 44AB of the Act and no defect or adverse remark had been recorded by the Assessing Officer. 3.1 It was specifically contended that the disallowance of 20% of total expenditure without rejection of books of account or identifi....
X X X X Extracts X X X X
X X X X Extracts X X X X
.............................................. 4.7 From the above facts it is clear that in order to prove the genuineness and the business purpose the appellant has furnished all the details required by the AO. The appellant has furnished the party wise details along with the name, address, PAN etc. of the parties. The appellant has furnished the ledger account copies as well as the details of expenses on which TDS was effected as well as the expenses on which TDS was not effected. Thus, all relevant details have been furnished to the AO as required. No specific infirmity has been pointed out by the AO. The AO has also not doubted the veracity of the expenses. Neither has the AO specified as to on what basis the part expenses on estim....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... assessment as well as remand proceedings. The Assessing Officer has neither rejected the books of account nor pointed out any particular defect in the bills, vouchers, or supporting documents. The Assessing Officer has not doubted the veracity of the expenses and did not point out any specific deficiency or defect in the bills and vouchers. 4.2 It is well-settled that where the assessee maintains audited books of account and furnishes complete details of expenditure, an ad-hoc disallowance, without pointing out specific defects or discrepancies, cannot be sustained in law. Estimation of expenditure is permissible only where the accounts are found to be unreliable or incomplete, which is not the case here. 4.3 During the appellate pro....