Audited books cannot support conjectural business-expense disallowance, while cash-payment claims require verification of Rule 6DD exceptions.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Ad hoc disallowance of business expenditure is unjustified where audited books are not rejected and the Assessing Officer identifies no bogus or unsupported expenditure, particularly when apparent discrepancies arise from incorrect expense nomenclature and revised records remain unchallenged. The business-expenditure disallowance was deleted. Cash-payment disallowance requires verification of whether payments exceeded the prescribed limit to a single recipient and whether business exigency or statutory exceptions apply, including exceptions concerning animal-husbandry produce. The cash-payment issue was remitted for verification and fresh computation without a merits determination.....