Disallowance of transport expenses due to lack of evidence: ITAT directs AO to estimate income at 8% u/s 44AD

The Income Tax Appellate Tribunal (ITAT) held that in the absence of credible evidence for transport expenditure claimed by a taxpayer, the Assessing Officer (AO) was justified in applying the presumptive income scheme under Section 44AD and estimating income at 8%. The decision emphasises that inadequate documentation or failure to substantiate claimed expenses can trigger statutory presumptions and restrict expense deduction claims. Taxpayers engaged in presumptive business income should maintain clear books, substantiation for outlays and evidentiary backing for claims to avoid automatic estimation under the provisions.