What did the Tribunal hold?

The Tribunal restored the appeal to the AO for a de novo assessment. This was done because the assessee's cross-appeal on the same issue was also restored to the AO.

The revenue appealed against the CIT(A)'s order reducing a 20% disallowance of total expenditure to 2%. The assessee had raised a cross-appeal on an identical issue for the same assessment year.

What were the issues?

Whether the CIT(A) erred in reducing the disallowance of expenditure when the AO found several bills to be defective. The appeal was restored for fresh assessment.

ACIT vs Pratiyogita Darpan | ITAT Agra 2019

Income Tax Appellate Tribunal, AGRA BENCH: AGRA

Before: SHRI LALIET KUMAR, & DR. MITHA LAL MEENA

For Appellant: Shri Waseem Arshad, Sr. DR, Shri Ravi Agarwal, AR

Hearing: 19.07.2019Pronounced: 29.07.2019

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH: AGRA

BEFORE SHRI LALIET KUMAR, JUDICIAL MEMBER, AND DR. MITHA LAL MEENA, ACCOUNTANT MEMBER

I.T.A No.447/Agra/2018 (ASSESSMENT YEAR-2015-16)

ACIT, Circle-1(1)(1), Vs.. M/s Pratiyogita Darpan, 2/11A, Agra. Swadeshi Bima Nagar, M.G. Road, Agra. PAN:AADFP9354R (Appellant) (Respondent)

Appellant by Shri Waseem Arshad, Sr. DR. Assessee by Shri Ravi Agarwal, AR.

Date of Hearing 19.07.2019 Date of Pronouncement 29.07.2019

ORDER Per Dr. M. L. Meena, A.M.: The present appeal is filed by the revenue against the order passed by the ld. Commissioner of Income Tax Appeals-1, Agra, [(in short ‘the ld. CIT(A)] order dated 28.03.2018 for A.Y. 2015-16. The revenue has raised the following ground: “1. That Ld. CIT (A)-1, Agra on the facts and in the circumstances of the case, has erred in reducing the disallowance of 20% of total expenditure made by A.O. to 2%, without appreciating the fact that a number of bills produced by the assessee were defective (as mentioned in the assessment order), which is sufficient to justify impugned disallowance of expenditure made by the AO.

I.T.A No.447/Agra/2018 2

That the order of Ld. CIT (A)-1, being erroneous in law and on facts be set aside and that order of the A.O. be restored.” 2. At the outset the ld. Counsel for the assessee stated that the cross appeal of the assessee on the identical issue for the same assessment year has been restored to the AO to pass de novo assessment order vide in ITA No. 302/Agra/2018. Consequently revenue appeal is restored to the AO to be decided afresh after allowing opportunity of being heard to the assessee. No doubt, assessee shall cooperate in the fresh proceedings before the AO.

In the result, for statistical purposes, the appeal stands allowed.

Order pronounced in the open court on 29/07/2019.

Sd/- Sd/- (Laliet Kumar) (Dr. M.L. Meena) JUDICIAL MEMBER ACCOUNTANT MEMBER *AKV* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT Sr. Private Secretary, ITAT, Agra.

ACIT CIRCLE-1(1)(1), AGRA vs. PRATIYOGITA DARPAN, AGRA

What did the Tribunal hold?

What were the facts?

What were the issues?

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