DCIT, CC2(2), CHENNAI, CHENNAI vs. JAYAPRIYA COMPANY, CHENNAI

ITA 1251/CHNY/2025Status: DisposedITAT Chennai12 September 2025AY 2021-22Bench: SHRI ABY T. VARKEY (Judicial Member), SHRI AMITABH SHUKLA (Accountant Member)36 pages
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What did the Tribunal hold?

The Tribunal held that the disallowance of bad debts was unjustified as the Ld. CIT(A) had examined the details and found it to be so. The Tribunal also upheld the Ld. CIT(A)'s deletion of additions for suppressed business income, stating it would amount to double taxation.

What were the facts?

A search action on the assessee firm revealed unaccounted income from real estate and land purchases. The assessee offered additional income for various assessment years, which the AO found to be in order. However, the AO made disallowances/additions for bad debts and interest expenditure in AYs 2021-22 & 2022-23.

What were the issues?

Whether the disallowance of bad debts claimed by the assessee was justified, and whether additions made by the AO for suppressed business income constituted double taxation.

Which sections of the Income-tax Act were involved?

Section 36(1)(vii),Section 36(1)(iii),Section 132,Section 147,Section 139,Section 250

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Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI

Before: SHRI ABY T. VARKEY & SHRI AMITABH SHUKLA

Hearing: 16.07.2025Pronounced: 12.09.2025

PER ABY T. VARKEY, JM: These appeals preferred by the Revenue and the cross-objections of the assessee are against the orders passed by the Learned Commissioner

of Income Tax (Appeals)-19, (hereinafter referred to as ‘Ld. CIT(A)‘),

Chennai, both dated 12.02.2025, for the Assessment Years (hereinafter

ITA Nos.1251 & 1252/Chny/2025 & CO Nos.43 & 44/Chny/2025 (AYs 2021-22 & 2022-23) Jayapriya Company referred t

The order continues below.

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