SANSERA ENGINEERING LIMITED ,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-6(1)(1) , BANGALORE

ITA 1958/BANG/2025Status: DisposedITAT Bangalore21 August 2026AY 2012-1318 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the AO's disallowance of club expenses was ad hoc and lacked specific reasoning. Regarding electrical installations, the Tribunal found them integral to plant and machinery and directed the AO to allow the remaining claim for additional depreciation.

What were the facts?

The assessee company claimed club expenses as business expenditure. The Assessing Officer (AO) disallowed a portion of these expenses, and the Commissioner of Income Tax (Appeals) confirmed the disallowance. The assessee also claimed depreciation on electrical installations, which was partly disallowed by the lower authorities.

What were the issues?

Whether club expenses are allowable as business expenditure when the disallowance is ad hoc, and whether electrical installations integral to plant and machinery are eligible for full depreciation.

Which sections of the Income-tax Act were involved?

Section 37,Section 32(1)(iia),Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, BANGALORE BENCHES, BANGALORE

Before: WASEEM AHMED & KESHAV DUBEY

PER WASEEM AHMED, ACCOUNTANT MEMBER:

These two appeals pertaining to A.Y. 2012-13 and 2014-15, filed at the instance of the assessee, against the order of the learned Commissioner of Income Tax Appeal

ITA 1958 & 1959/BANG/2025 SANSERA ENGINEERING LIMITED

ADDL/JCIT(A)-5 Kolkata (hereafter the le

The order continues below.

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