RAGHANI TRADELINK,AHMEDABAD vs. INCOME TAX OFFICER, WARD 1(3)(1), AHMEDABAD, GUJARAT
Facts
The assessee, a collection and commission agent, appealed against the CIT(A)'s order confirming disallowances on sub-brokerage and administrative expenses. The AO had made ad-hoc disallowances of 10% on both these expenses due to alleged exaggeration and lack of sufficient documentary evidence.
Held
The Tribunal held that the lower authorities' disallowances were not justified. The assessee had provided extensive details and evidence, and the AO's observations were general and vague. The Tribunal found no grounds to disallow the claimed expenses and ordered their deletion.
Key Issues
Whether ad-hoc disallowances of sub-brokerage and administrative expenses are justified without specific discrepancies being pointed out and documented by the AO.
Sections Cited
143(2), 142(1), 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD
Before: Shri Sanjay Garg & Annapurna Gupta
आदेश की #ितिलिप अ$ेिषत/Copy of the Order forwarded to : 1. अपीलाथ% / The Appellant #&थ% / The Respondent. 2. 3. संबंिधत आयकर आयु' / Concerned CIT आयकर आयु' अपील 4. ( ) / The CIT(A)- 5. िवभागीय #ितिनिध आयकर अपीलीय अिधकरण अहमदाबाद/DR,ITAT, Ahmedabad. , , 6. गाड� फाईल / Guard file.
आदेशानुसार/ BY ORDER, स&ािपत #ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad
Date of dictation (dictation on H-JM’s computer) : 1. 12.3.2026 : 2. Date on which the typed draft is placed before the 12.3.2026 Dictating Member. Date on which the approved draft comes to the Sr.P.S./P.S : 3. : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 16.3.2026 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 16.3.2026 7. Date on which the file goes to the Bench Clerk. : 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order
