COFFEEDAY TRADING LIMITED ,BANGALORE vs. DCIT, CIRCLE-2(2)(1), BANGALORE

ITA 1172/BANG/2025Status: DisposedITAT Bangalore12 November 2025AY 2020-21Bench: SHRI NARENDER KUMAR CHOUDHRY (Judicial Member), SHRI WASEEM AHMED (Accountant Member)1 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee failed to provide sufficient documentation to substantiate the claim for advisory and legal fees. Consequently, the Tribunal remanded the issue back to the Commissioner for a fresh decision, allowing the assessee an opportunity to produce relevant documents.

What were the facts?

The assessee claimed advisory and legal fees as expenses for the transfer of shares of M/s. Mind Tree Ltd. The Assessing Officer disallowed these expenses, holding they were not incurred wholly and exclusively for the transfer of investment. The assessee argued these fees were necessary for selling a large block of pledged shares in a distressed financial situation.

What were the issues?

Whether advisory and legal fees incurred for the sale of shares are allowable as expenses against capital gains. Whether the notice issued under Section 143(2) was valid without specifying the type of scrutiny.

Which sections of the Income-tax Act were involved?

Section 250,Section 143(2)

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Income Tax Appellate Tribunal, BANGALORE BENCH “A”, BANGALORE

Before: SHRI NARENDER KUMAR CHOUDHRY & SHRI WASEEM AHMED

For Appellant: Ms. Mega , Ld. CA/AR
For Respondent: Shri Balusamy N, Ld. JCIT D.R
Hearing: 14.08.2025Pronounced: 12.11.2025

Per : Narender Kumar Choudhry, Judicial Member:

This appeal has been preferred by the Assessee against the order dated 25th March 2025 impugned herein passed by the National Faceless Appeal Centre / Commissioner of Income Tax (Appeals) [in short ‘Ld. Commissioner] under section 250 of the Income Tax, 1961 [in short ‘Act’] for the A.Y. 2020–21. 2. Brief facts relevant for adjudication of the instant appeal are that the Assessee being engaged in the business of trading of coffee beans and allied products etc. during the A.Y. under consi

The order continues below.

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