A H INDUSTRIES,DAMAN vs. ITO, DAMAN WARD, DAMAN

ITA 984/SRT/2025Status: DisposedITAT Surat11 August 2026AY 2017-184 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal found merit in the assessee's submission that the disallowed expenses were actually business expenses. Based on supporting documents like the Profit & Loss Account and purchase/sales books, the Tribunal deleted the addition.

What were the facts?

The assessee claimed a deduction of Rs. 32,28,900/- under Section 57 of the Income Tax Act, 1961, which was disallowed by the Assessing Officer. The assessee argued that this was a mistake in reporting business expenses under 'Income from other sources' instead of 'Profits and gains from business or profession'.

What were the issues?

Whether expenses claimed under Section 57 were genuine business expenses mistakenly reported under 'Income from other sources' and if the addition made by the Assessing Officer was justified.

Which sections of the Income-tax Act were involved?

Section 57,Section 143(3),Section 44AD,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC”

Before: Dr. Arjun Lal Saini

For Respondent: Shri Ajay Uke, Sr. DR
Hearing: 19/05/2026Pronounced: 11/08/2026

Per, Dr. Arjun Lal Saini, AM: Captioned appeal filed by the assessee, pertaining to Assessment Year 2017-18, is directed against the order passed under section 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by Commissioner of Income-tax (Appeals), (hereinafter referred to as “the Ld. CIT(A)”), dated 21.08.2025, which in turn arises out of an assessment order passed by the Assessing Officer u/s 143(3) of the Act, on 30.11.20

The order continues below.

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