JAI GURDAVE SPINNING MILLS PRIVATE LIMITED,DELHI vs. INCOME TAX OFFICER, DELHI

This assessee’s appeal for assessment year 2016-17, arises against the Commissioner of Income Tax (Appeals)/Addl./JCIT(A)-
10, Mumbai’s DIN and order no. ITBA/APL/S/250/2024-
25/1071613247(1), dated 27.12.2024, involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
2. Heard both the parties. Case files perused.
3. It emerges during the course of hearing that both the learned lower authorities have disallowed the assessee’s entire expenditure
Assessee by Sh. S.C. Garg, CA
Department by Sh. Yogeshwar Sharma, Sr. DR
Date of hearing
14.05.2025
Date of pronouncement
14.05.2025
2 | P a g e claim of Rs.9,62,470/-, in the assessment framed on 24.12.2018
which stands upheld to the extent of Rs.9,50,303/- in the lower appellate proceedings. It is made clear that what all the learned
CIT(A)/NFAC has done is to allow the assessee’s audit fee expenditure claimed of Rs.11,500/- with a very small sum of bank charges and upheld all other items.
4. That being the case, the Revenue could hardly dispute that once the assessee is engaged in the business of fabric trading etc., disallowance of its entire impugned expenditure would be hardly be sustainable in law, even if it has failed to plead and prove the same by way of filing cogent/supporting evidence. It thus deemed appropriate in these peculiar facts that a lump sum disallowance of Rs. 1 lakh only would be just and proper with a rider that the same shall not be treated as a precedent. The assessee gets the relief of Rs.8,50,303/- in other words. Necessary computation shall follow as per law.
5. This assessee’s appeal is partly allowed.
Order pronounced in the open court on 14th May, 2025 (SATBEER SINGH GODARA)

JUDICIAL MEMBER

Dated: 14th May, 2025. 3 | P a g e

RK/-