M/S B.M.GUPTA & SONS,ALLAHABAD vs. DEPUTY COMMISSIONER OF INCOME TAX RANGE-1, ALLAHABAD

ITA 26/ALLD/2020Status: DisposedITAT Allahabad05 July 2021AY 2005-067 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the disallowance of interest, being consequential to the Section 68 additions, could not be decided until those earlier years' issues were adjudicated. Similarly, the security deposit issue was also set aside for fresh adjudication by the CIT(A) due to lack of verification.

What were the facts?

The assessee's appeal concerned disallowance of interest on deposits and an addition for security deposit treated as cash credit. The disallowance of interest was based on earlier additions under Section 68, which were set aside by the ITAT to the CIT(A) for fresh adjudication but remained pending.

What were the issues?

Whether disallowance of interest is justified when the underlying cash credit additions are pending adjudication. Whether a security deposit treated as cash credit requires verification of its origin year.

Which sections of the Income-tax Act were involved?

Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ALLAHABAD BENCH ‘SMC’ ALLAHABAD

Before: SHRI.VIJAY PAL RAO

For Appellant: Shri Asit Hajela, CA
For Respondent: Shri A.K. Singh, CIT ( Sr. DR)
Hearing: 12.07.2021Pronounced: 15.07.2021

PER SHRI VIJAY PAL RAO, JUDICIAL MEMBER:

This appeal of the assessee is directed against the order dated 26.09.2019 of ld. CIT(A), Allahabad for the A.Y. 2005-06. The assessee has raised the following grounds: “In the case of M/s B.M. Gupta & Sons (HUF), 64 Balrampur House, Allahabad -211002 against the Order dated 26.09.2019 passed by the Commissioner of Income Tax (Appeals) Allahabad for the Assessment Year 2005-06. 01. BECAUSE the Ld. Commissioner of Income Tax (Appeals) has erred in law and on facts in confirming Rs. 77,167/- being the disallowance of interest paid on deposits and Rs. 95,000/- being the addition of security deposit treated as cash credit under

The order continues below.

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