SUCHITA BHATIA,JAIPUR vs. DCIT CIR-6, JAIPUR, JAIPUR

ITA 902/JPR/2024Status: DisposedITAT Jaipur17 March 2025AY 2016-17Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the AO exceeded the scope of limited scrutiny by examining the expenditure issue, which was not the original reason for selection. The AO should have converted the assessment to complete scrutiny with proper approval to examine such issues.

What were the facts?

The assessee's case was selected for limited scrutiny concerning contract receipts. During the assessment, the Assessing Officer (AO) disallowed a payment of Rs. 1,04,35,000/- made to M/s. Ganpati Communication, deeming it non-business expenditure. The CIT(Appeals) upheld this disallowance.

What were the issues?

Whether the AO exceeded the scope of limited scrutiny by disallowing an expenditure not covered by the initial reasons for selection. Whether the payment made to M/s. Ganpati Communication constituted a business expense.

Which sections of the Income-tax Act were involved?

Section 37,Section 143(2),Section 142(1)

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Income Tax Appellate Tribunal, JAIPUR BENCHES,”B” JAIPUR

Before: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;dj vihy la-@ITA. No. 902/JPR/2024

Hearing: 22/01/2025Pronounced: 17/03/2025

PER: DR. S. SEETHALAKSHMI, J.M. The present appeal has been filed by the assessee against the order of ld.CIT (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 22.05.2024 passed under section 250 of the I.T. Act, 1961, for the assessment year 2016-17. 2. The assessee has raised the following grounds of appeal :-

1.

The ld. CIT (Appeals) erred in law and on facts in confirming the disallowance of Rs. 1,04,35,000/- being payme

The order continues below.

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