In the case of T ATA COFFEE LIMITED ( 2021] 17 ITR-OL 1 (Kar) the assesses suffered disallowance out of entertainment, miscellaneous expenses for wrong classification( the details of the expenditure incurred by the assessee are not directly relatable to each head), non-maintenance of the logbook of the vehicles and for failure to produce vouchers relatable to such expenses notwithstanding the oft-repeated argument that under section 37(1) of the Act, there cannot be ad hoc dis- allowance of a claim and that even when the AO is not satisfied, he can reject the claim in entirety under section 145(3) of the Act.
In the absence of such details, the amount was thus held to have been expended for non-business purposes by the AO/CIT(A)/Tribunal in seriatim.
With not much hesitation the High Court held as under:-
“The scope of interference by this court in the exercise of power under section 260A of the Act is well settled. This court in the exercise of powers under section 260A of the Act would interfere with the findings of the fact provided the same is shown to be perverse. In the instant case, the findings recorded by all the authorities are based on the meticulous appreciation of evidence on record which by no stretch of imagination can be said to be perverse. The matter stands concluded by the findings of fact. Therefore, we hold that no substantial question of law arises for consideration in this appeal.”