ITAT Delhi emphasizes that income tax authorities lack the capacity to assess business expenditure accurately, stating that they cannot replace businessmen in determining appropriate business expenses.
The Income Tax Appellate Tribunal (ITAT), Delhi Bench, rendered a verdict asserting that income tax authorities lack the authority to ascertain the appropriate amount of expenditure for business purposes. In a specific case involving Serco India Pvt. Ltd., a subsidiary of Serco Group PLC, UK, which functions as a captive service center offering IT and IT-enabled services to its parent company, the tribunal emphasized the autonomy of businesses in determining their expenditures. The ruling reinforces the principle that tax authorities should not interfere in the evaluation of business-related expenses, recognizing the unique operational insights possessed by the businesses themselves.
For further details, you can refer to the complete article [here](https://www.taxscan.in/income-tax-authorities-cannot-determine-how-much-expenditure-should-have-been-incurred-for-the-purpose-of-business-itat-read-order/351213/).
State Department approves sale of tank ammunition to Israel, bypassing Congress – (newat9.com)
