SHANT KUMAR BATHWAL,RANCHI vs. ACIT CIR-3, RANCHI

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ITA 296/RAN/2016Status: DisposedITAT Ranchi28 February 2018AY 2013-142 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal agreed with the assessee, stating that Section 40(a)(ia) cannot be applied to a deduction claimed under Section 57. Therefore, the disallowance made by the Assessing Officer was deleted.

What were the facts?

The Assessing Officer made a disallowance under Section 40(a)(ia) of the Income Tax Act. The assessee contended that the expenditure was claimed under Section 57, making Section 40(a)(ia) inapplicable.

What were the issues?

Whether disallowance under Section 40(a)(ia) is applicable to expenditure claimed as a deduction under Section 57.

Which sections of the Income-tax Act were involved?

Section 40(a)(ia),Section 57

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RANCHI BENCH (SMC

Before: Hon’ble Shri J. Sudhakar Reddy]

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI BENCH (SMC), RANCHI [Before Hon’ble Shri J. Sudhakar Reddy] I.T.A. No. 296/Ran/2016 Assessment Year : 2013-14 Shant Kumar Bathwal...............................................................................................Appellant S.K. Bathwal & Company, 301, Shrilok Complex, 4, H.B. Road, Ranchi – 834 001. [PAN: ACCPB 1599 B] ACIT CIR 3...................……………………………………................................................Respondent Revenue Building, Main Road, Ranchi. Appearances by: Shri S.K. Bathwal, Advocate appearing on behalf of the Assessee. Shri P.K. Mondal appearing on behalf of the Revenue. Date of concluding the hearing : February 22, 2018 Date of pronouncing the order : February 28, 2018 ORDER Per J. Sudhakar Reddy, AM

This is an appeal filed by the assessee directed against the order of CIT (Appeals) Ranchi dated 30.09.2016 for the assessment year 2013-14.

2.

After hearing rival contentions, I find that the Assessing Officer made a disallowance under section 40(a)(ia) of the Act. The case of the assessee is that the expenditure in question was claimed under section 57 and hence the computation of income under the head ‘income from business’ provisions under the head business of provision i.e. section 28 to 44 of the Act do not applying to the facts of the case. We agree with the proposition. Section 40(a)(ia) cannot be

2 I.T.A. No. 296/Ran/2016 A.Y. 2013-14 Shant Kumar Bathwal applied to a claim of deduction u/s 57 of the Act. Thus this ground of the assessee is allowed and the disallowance deleted.

3.

In the result, the appeal of the assessee is allowed. Order Pronounced in the Open Court on 28th February, 2018.

Sd/- (J. Sudhakar Reddy) ACCOUNTANT MEMBER Dated: 28/02/2018 Biswajit, Sr. PS

Copy of order forwarded to: 1. Shant Kumar Bathwal, S.K. Bathwal & Company, 301, Shrilok Complex, 4, H.B. Road, Ranchi – 834 001.

2.

ACIT, CIR 3, Revenue Building, Main Road, Ranchi.

3.

The CIT(A)

4.

The CIT

5.

DR True Copy, By order,

Sr. P.S. / H.O.O. ITAT, Ranchi

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