DCIT, CIRCLE-2(1)., VIJAYAWADA vs. 3K ENTERTAINMENT PRIVATE LIMITED, VIJAYAWADA

ITA 403/VIZ/2017Status: DisposedITAT Visakhapatnam17 August 2018AY 2012-20133 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal dismissed the Revenue's grounds of appeal. Specifically, it found that Section 40A(3) was not invoked in the lower orders, upheld the CIT(A)'s direction to disallow 15% of expenditure, and found no fault with the CIT(A)'s exercise of Rule 46(A)(3).

What were the facts?

The Revenue appealed an order from the CIT(A) concerning the Assessment Year 2012-13. The appeal raised multiple grounds, but only three were considered for adjudication.

What were the issues?

Whether Section 40A(3) was applicable, the correctness of disallowing 15% of expenditure, and the propriety of the CIT(A)'s actions under Rule 46(A)(3).

Which sections of the Income-tax Act were involved?

Section 40A(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM

Before: SHRI V. DURGA RAO, HON’BLE & SHRI D.S. SUNDER SINGH, HON’BLE

For Respondent: Shri K.C. Das – Sr.DR
Hearing: 06/08/2018

PER V. DURGA RAO, JUDICIAL MEMBER

This appeal by the Revenue is directed against the order of Commissioner of Income Tax (Appeals), Vijayawada, dated 01/02/2017 for Assessment Year 2012-13. 2. The Revenue has raised as many as 09 grounds, but we find 03 grounds are necessary for adjudication i.e. ground Nos. 3, 7 & 8. 3. Ground No.3 relating to invocation of section 40A(3) of the Income Tax Act, 1961 (hereinafter referred to as "Act"). The (M/s. 3K Entertainment Pvt. Ltd.)

provisions of section 40A(3) of the Act have neither coming out of the assessment order nor ld. CIT(A)’s order. Therefore, this ground of appeal raised by the Revenue cannot be survived, same is dismissed.

4.

Ground No.7 relating to disallowance of exp

The order continues below.

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