ACIT CIR 4 (2)(2), MUMBAI vs. M/S KOTHARI FABTEX PVT LTD., MUMBAI

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ITA 6732/MUM/2019Status: DisposedITAT Mumbai05 July 2021AY 2011-123 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal concurred with the CIT(A)'s decision, acknowledging that the receipt and utilization of wrist watches could not be ignored. They found it reasonable to make an estimated addition of 12.5% on the purchases.

What were the facts?

The assessee claimed expenses of Rs. 7.60 Lacs for purchases of wrist watches for sales promotion. The Assessing Officer disallowed the expense as the supplier could not be traced. The CIT(A) allowed partial relief by estimating an addition of 12.5% on the purchases.

What were the issues?

Whether the disallowance of expenses for sales promotion is justified when the supplier cannot be traced, and if partial relief can be granted through estimation.

Which sections of the Income-tax Act were involved?

Section 37(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “H” BENCH, MUMBAI

Before: HON’BLE SHRI AMARJIT SINGH, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

For Respondent: Shri Gurbinder Singh-Ld. DR

सुनवाई की तारीख/ : 05/07/2021 Date of Hearing घोषणा की तारीख / : 05/07/2021 Date of Pronouncement आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)

1.

Aforesaid appeal by Revenue for AY 2011-12 contest the order of Ld. Commissioner of Income Tax (Appeals)-9, Mumbai [CIT(A)], Appeal No. CIT(A)-9/(Cir.4)(2)(2)/52/2016-17 dated 27/08/2019 which has granted partial relief to the assessee on account of disallowance made by Ld. AO u/s 37(1) for Rs.7.60 Lacs.

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