BASTI WINES COMPANY,BASTI vs. ACITT, CIRCLE- 1(1)(1), KANPUR

ITA 759/LKW/2025Status: DisposedITAT Lucknow02 June 2026AY 2017-185 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the assessee failed to substantiate the claimed expenses with direct evidence like bills and vouchers. The fact that the books of accounts were audited does not exempt the assessee from the onus of proving their claims.

What were the facts?

The assessee appealed against an order upholding ad-hoc disallowances of salary, stationery, and shop expenses. The Assessing Officer had made these disallowances due to a lack of supporting evidence, despite the assessee's audited books of accounts.

What were the issues?

Whether ad-hoc disallowances of expenses are sustainable when the assessee fails to provide supporting documentary evidence, even if the books of accounts are audited.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW BENCH ‘B’, LUCKNOW

Before: SHRI KUL BHARAT, VICE- & SHRI ANADEE NATH MISSHRA

For Appellant: Shri P.K. Kapoor, CA

PER ANADEE NATH MISSHRA:A.M.

(A) This appeal has been filed by the assessee against the impugned appellate order of learned Commissioner of Income Tax(Appeals)/ Addl/JCIT(A)-2, Vadodara [for short “Learned CIT(A)” dated 25.08.2025, for the AY 2017-18. The assessee has raised the following grounds of appeal:

“1. BECAUSE the Ld. "JCIT(A)" has erred in law and on facts in upholding the ad-hoc disallowance of sums aggregating Rs. 18,86,417/- out of following expenses:- (i) ad-hoc disallowance of Rs. 16,75,800/- being 10% of salary and wages, Assessment Year:2017-18 2

(ii) ad-hoc disallowance of Rs. 86,582/- being 20% of

The order continues below.

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