DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1(2), MUMBAI vs. M/S CAPACIT"E INFRAPROJECT LTD, MUMBAI

ITA 956/MUM/2023Status: DisposedITAT Mumbai29 December 2023AY 2019-2030 pages
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What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s decision to delete the disallowance of professional fees paid to a related party, finding no infirmity in the order. The AO had not established how the fees were excessive or unreasonable.

What were the facts?

The Revenue appealed ITAT's deletion of disallowances made by the Assessing Officer (AO) concerning unverified purchases, sub-contract expenses, education fees, and professional fees paid to a related party. The assessee was engaged in construction services.

What were the issues?

Whether the CIT(A) erred in deleting disallowances related to unverified purchases, sub-contract expenses, education fees, and professional fees paid to a related party. The primary issue revolved around the genuineness of expenses and the reasonableness of payments to related parties.

Which sections of the Income-tax Act were involved?

Section 37(1),Section 40(2)(a)

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Cases cited in this judgment(3)Show list

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Income Tax Appellate Tribunal, MUMBAI BENCH “C” MUMBAI

Before: SHRI OM PRAKASH KANT & SHRI SANDEEP SINGH KARHAIL

For Appellant: Mr. Viraj Mehta
For Respondent: Mr. Solgy Jose T. Kottaram, CIT-DR
Hearing: 12/12/2023Pronounced: 29/12/2023

PER OM PRAKASH KANT, AM

These appeals by the Revenue are directed against separate order, each dated 03.01.2023, passed by the Ld. Commissioner of Income-tax (Appeals)-47, Mumbai [in short ‘the Ld. CIT(A)’] for assessment years 2017-18 to 2020-21. The common grounds are involved in these appeals and therefore, same were heard together and disposed off by way of this consolidated order for convenience.

M/s Capacit’e Infraprojects Ltd. 2 M/s Capacit’e Infraprojects Ltd. ITA Nos. 954 to 957/Mum/2023 ITA Nos.

The order continues below.

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