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Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI
Before: SHRI MAHAVIR SINGHAND SHRI G. MANJUNATHA
आदेश /O R D E R
PER MAHAVIR SINGH, VICE PRESIDENT:
This appeal by the assessee is arising out of the order of the Commissioner of Income Tax (Appeals)-15, Chennai in ITA No.027/2016-17/CIT(A)-15 dated 31.01.2018. The assessment was framed by the Income Tax Officer, Corporate Ward 6(1), Chennai
2 ITA No.1343/Chny/2018 for the assessment year 2013-14 u/s.143(3) of the Income Tax Act, 1961 (hereinafter the ‘Act’) vide order dated 31.03.2016.
The only issue in this appeal of assessee is as regards to the order of CIT(A) confirming the action of the AO in making disallowance u/s.41(1)(a) of the Act and that also to the extent of Rs.1 crore, which is not reconciled on account of Sri Ramakrishna Raja.
Brief facts relating to this short issue are that the AO made disallowance u/s.41(1)(a) of the Act on the ground that advance received from Sri Ramakrishna Raja amounting to Rs.3.96 crores is cessation of liability and assessee has not reconciled the amount to the extent of Rs.1 crore. The ld.counsel stated that this amount of Rs.1 crore is only disputed by assessee now. He requested that for reconciliation purpose, the matter can be referred back to the file of the AO and in case, the assessee is able to reconcile this amount of Rs.1 crore as noted by CIT(A) in para 6.5.3 at page 18 of his order in tabular form at item 4, the same can be adjudicated and decided accordingly. To this proposition, the ld. Senior DR has not raised any objection.
3 ITA No.1343/Chny/2018 4. After hearing rival contentions and going through the facts of the case, we set aside this amount of Rs.1 crore disallowed by AO u/s.41(1)(a) of the Act, so that the assessee can reconcile and whether this is to be disallowed or not, the AO will decide based on the facts of the case. Accordingly, this issue of assessee’s appeal is set aside to the file of the AO and allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 18th November, 2022 at Chennai.
Sd/- Sd/- (महावीर �सह ) (जी. मंजुनाथ) (MAHAVIR SINGH) (G. MANJUNATHA) उपा�य� /VICE PRESIDENT लेखा सद�य/ACCOUNTANT MEMBER चे�ई/Chennai, �दनांक/Dated, the 18th November, 2022 RSR आदेश क� �ितिलिप अ�ेिषत/Copy to: 1. अपीलाथ�/Appellant 2. ��यथ�/Respondent 3. आयकर आयु� (अपील)/CIT(A) 4. आयकर आयु� /CIT 5. िवभागीय �ितिनिध/DR 6. गाड� फाईल/GF.