What did the Tribunal hold?

The Tribunal found that the expenses were indeed business-related given the nature of the assessee's liaisoning business. Therefore, the disallowances made by the lower authorities were not justified.

The assessee challenged the disallowance of public relation expenses, travelling and conveyance expenses, and interest on car loans by the lower authorities. The assessee argued these expenses were necessary for its business of liaising with foreign manufacturers for railway tenders.

What were the issues?

Whether public relation expenses, travelling and conveyance expenses, and interest on car loans were incurred for business purposes and thus allowable.

Alpha National Trading Co. vs ACIT | ITAT Kolkata 2023

Income Tax Appellate Tribunal, “B” BENCH KOLKATA

Before: Shri Sanjay Garg & Dr. Manish Borad

order : September 27, 2023 आदेश / ORDER संजय गग�, �या�यक सद�य �वारा / Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order dated 09.06.2023 of the National Faceless Appeal Centre (hereinafter referred to as the ‘CIT(A)’) passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’). 2. The assessee in this appeal has taken the following grounds of appeal: “1. For that on the facts and circumstances of the case the Ld. Commissioner of Income-tax (Appeals) National Faceless Appeal Centre, has erred in confirming Disallowance of a sum of Rs. 4,12,098/- out of Assessment year: 2016-17 Alpha National Trading Co Rs.6,24,070/- of Public Relation Expenses made by Ld. ACIT, Circle 29, Kolkata on the alleged ground of personal use and not incidental to the business

2. For that on the facts and circumstances of the case the Ld. Commissioner of Income-tax (Appeals) National Faceless Appeal Centre, has erred in confirming Disallowance of a sum of Rs. 9,29,860/- out of Rs.37,19,439/- of Travelling and conveyance expenses made by Ld. ACIT, Circle 29, Kolkata on the alleged ground of not utilization for business purpose. 3 For that on the facts and circumstances of the case the Ld. Commissioner of Income-tax (Appeals) National Faceless Appeal Centre, has erred in confirming Disallowance of a sum of Rs. 1,72,210/- being l0% of interest on car loans Rs. 17,22,100/- made by Ld. ACIT, Circle 29, Kolkata on the alleged ground of personal use.

4. For that the appellant craves leave to add, to alter, to amend the above grounds of appeal on or before the hearing of appeal.”

3. A perusal of the above grounds of appeal would reveal that the assessee is aggrieved by the action of the lower authorities in making/confirming the addition on account of disallowance of expenditure incurred in relation to public relation expenses, travelling and conveyance expenses and interest on car loans.

The ld. Counsel for the assessee before the lower authorities has duly explained that the business of the assessee is of liaisoning and to procure, facilitate, provide logistics etc. to foreign manufacturer suppliers and to provide/facilitate the procuring of material for railways from the aforesaid foreign companies. The relevant part of the submissions of the assessee before the CIT(A) in this respect are reproduced as under:

ALPHA NATIONAL TRADING CO.,KOLKATA vs. ACIT, CIR-29, KOL, KOLKATA

What did the Tribunal hold?

What were the facts?

What were the issues?

Which sections of the Income-tax Act were involved?

Recent GST High Court judgments