LIMRAS LOTTERY & TRADINGCOMPANY PVT. LTD,CHENNAI vs. ITO, CORPORAT CIRCLE-4(1), CHENNAI

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ITA 451/CHNY/2023Status: DisposedITAT Chennai29 May 2023AY 2010-112 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The tribunal remitted the issue of difference between gross total income and Form 26AS to the AO for reconciliation. The disallowance for want of TDS on rental payments was also restored to the AO for substantiation. The addition for legal expenses was upheld.

What were the facts?

The assessee's appeal was delayed by 1265 days due to the demise of their counsels from COVID-19. The tribunal condoned the delay and admitted the appeal for adjudication on merits.

What were the issues?

Whether the additions made by the AO regarding discrepancies in income, TDS on rent, and legal expenses are justified.

Which sections of the Income-tax Act were involved?

Section 40(a)(ia)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, CHENNAI

Before: HON’BLE SHRI V. DURGA RAO, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

माननीय +ी वी. दुगा1 राव, �ाियक सद2 एवं माननीय +ी मनोज कुमार अ7वाल ,लेखा सद2 के सम9। BEFORE HON’BLE SHRI V. DURGA RAO, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपीलसं./ (िनधा1रणवष1 / Assessment Year: 2010-11) M/s. Limras Lottery & Trading Company ITO Pvt. Ltd. Corporate Circle-4(1) बनाम/ 164, Near Hotel Orchid Inn, Chennai. Vs. Peters Road, Opp. New Colony, Chennai-600 014. �थायीलेखासं./जीआइआरसं./PAN/GIR No.AAACL-7724-R (अपीलाथ�/Appellant) : ("#थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : None (Adj. application rejected) "#थ�कीओरसे/Respondent by : Shri P. Sajit Kumar (JCIT) – Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 29-05-2023 घोषणाकीतारीख/Date of Pronouncement : 29-05-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. At the time of hearing of captioned appeal, none appeared for assessee and accordingly, the appeal is being disposed-off with the able assistance of Ld. Sr. DR who pleaded for dismissal of the appeal.

2.

The registry has noted delay of 1265 days in the appeal, the condonation of which has been sought by the assessee by way of condonation petition which is supported by the affidavit of director of the assessee company. It has been submitted that the two counsels appointed by the assessee expired in the year 2021 and 2022 due to Coid-19 Pandemic which led to delay in the appeal. Considering the same, we condone the delay and admit the appeal for adjudication on merits.

3.

The assessee has assailed three additions. The addition of Rs.2.45 Lacs represent difference of gross total income reflected by the assessee in its Income Tax Return vis-à-vis the amount reflected in Form 26AS. We find that the same is matter of reconciliation and accordingly, we remit this issue back to the file of Ld. AO with a direction to the assessee to reconcile the difference.

4.

The second addition is disallowance u/s 40(a)(ia) for Rs.4.44 Lacs for want of TDS on rental payments. Apparently, the payments are for Delhi office and Kolkata Office and the payees seem to be different. Therefore, we restore this issue back to the file of Ld. AO with a direction to the assessee to substantiate this claim.

5.

The last addition of Rs.2.55 Lacs represents legal expenses for which no proof could be submitted by the assessee. Therefore, this addition does not require any interference on our part.

6.

The appeal stand partly allowed for statistical purposes. Order pronounced on 29th May, 2023 Sd/- Sd/- (V. DURGA RAO) (MANOJ KUMAR AGGARWAL) �ाियक सद2/JUDICIAL MEMBER लेखासद2 / ACCOUNTANT MEMBER चे5ईChennai; िदनांकDated : 29-05-2023 DS आदेशकीXितिलिपअ7ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant2. ��यथ�/Respondent 3. आयकरआयु�त/CIT4. �वभागीय��त�न�ध/DR 5. गाड�फाईल/GF

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