HIIPR. COMMISSIONER OF INCOME TAX-1 vs. M/S DELHI ACADEMY OF MEDICAL SCIENCES PVT. LTD.

2026 CM APPL. 70692/2026- (Exemption)

Accordingly, the applications stand disposed of. ITA 812/2026

The present appeal has been filed by the Revenue under Section 260A of the Income-tax Act, 1961 (“the Act”), for Assessment Year 2014–15, assailing the order dated 28.06.2023 (“the Impugned Order”) passed by the learned Income Tax Appellate Tribunal, Bench „B‟, New Delhi (“the ITAT”), in ITA No. 842/Del/2020. By the Impugned Order, the ITAT upheld the order passed by the learned Commissioner of Income Tax (Appeals)-3, New Delhi [“the CIT(A)”], deleting the disallowance made on account of professional expenses in the sum of Rs. 3,14,60,800/-.

A perusal of the material on record indicates that the assessee is engaged in providing coaching classes for M.D./M.S. entrance examinations. For the relevant assessment year, the assessee claimed professional expenses amounting to Rs. 4,54,12,316/-, out of which the Assessing Officer disallowed professional expenses amounting to Rs. 3,14,60,800/- in respect of four entities.

Aggrieved by the aforesaid disallowance by the learned Assessing Officer, the assessee preferred an appeal before the CIT(A). The material on record indicates that the assessee was afforded opportunities to produce the concerned service providers. Of the service providers concerned, two such service providers appeared and acknowledged having rendered the services in question. They also stated that they had paid tax on the amounts received by them. The This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.

On this basis, the CIT(A) deleted the disallowance, and the ITAT subsequently upheld the decision of the CIT(A). The ITAT found that the assessee has furnished all the requisite documents called for by the Assessing Officer and has duly proved the rendition of professional services by producing the service agreement and has further established that payments of professional charges were made through account payee cheques after deduction of tax at source. The ITR filed by the Service professionals also reflected a receipt of the professional charges. The ITAT has further held that the Assessing Officer was unjustified in treating the professional expenses as bogus merely by placing reliance on the statement of Sh. Sanjay Bhandari during the course of his search.

Being aggrieved by the aforesaid Order, the Revenue has preferred the present appeal under Section 260A of the Act, challenging the deletion of the disallowance on account of This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.

Having considered the facts and circumstances of the case and the orders passed by the authorities below, this Court is of the view that no question of law arises in the present case and the Order passed by the ITAT is not perverse. Accordingly, this Court is not inclined to interfere with the impugned Order.

In any event, the tax effect involved in the present appeal is below the monetary limit of ₹2 crores prescribed for the appeals before the High Court under CBDT Circular No. 5/2024 dated 15.03.2024, as amended by Circular No. 9/2024 dated 17.09.2024. Accordingly, subject to the applicability of the aforesaid circular and in the absence of any applicable exception, the present appeal is liable to be disposed of on this ground.

Accordingly, the present appeal is disposed of in terms of the applicable CBDT circular on monetary limits.