What did the Tribunal hold?

The tribunal decided that a lump sum disallowance of 33% of the total of these four expenditure heads would meet the ends of justice, with the condition that it would not be a precedent.

The assessee challenged the disallowance of consultancy charges, commission payments, associates consultancy fees, and labour charges. While the assessee provided evidence, they could not prove every transaction with the payees.

What were the issues?

Whether the disallowance of various expenditure heads was justified, and if not, what would be a fair quantum of disallowance.

Sthapati Projects Infrastructure… vs I.T.O., Ward-5(4) | ITAT Kolkata 2020

Income Tax Appellate Tribunal, KOLKATA BENCH “SMC” KOLKATA

Before: Shri S.S, Godara

Shri Sourabh Majumdar, CA अपीलाथ� क� ओर से/By Appellant Shri Jayanta Khanra, SR-DR ��यथ� क� ओर से/By Respondent 04-02-2020 सुनवाई क� तार�ख/Date of Hearing 12-02-2020 घोषणा क� तार�ख/Date of Pronouncement आदेश /O R D E R This assessee’s appeal for assessment year 2014-15, arises against the Commissioner of Income-tax (Appeals)-2, Kolkata’s order dated 20.08.2019 passed in case No.11604/CIT(A)-2/16-17, involving proceedings u/s. 143(3) of the Income Tax Act, 1961; in short ‘the Act’. Heard Shri Majumdar, and Shri Khanra representing assessee and Revenue respectively.

Learned authorized representative invited my attention to the assessee’s multiple folded pleadings challenging correctness of both the lower authorities action disallowing consultancy charges, commission payments, associates consultancy fees and labour charges of ₹1,42,700/-, ₹4,00,000/-, ₹5,07,500 & ₹4,75,000/-; respectively, during the course of assessment as affirmed in the lower appellate proceedings. Mr. Majumdar states very fair that although thereby assessee has filed all the Sthapati Projects & Infrastructure Pvt. Ltd. Vs. ITO Wd-5(4),Kol. Page 2 corresponding evidence regarding the foregoing four head(s) of expenditure, it would not be able to prove each and every transaction with the payees parties to the hilt.

STHAPATI PROJECTS INFRASTRUCTURE PVT. LTD.,KOLKATA vs. I.T.O.,WARD-5(4), KOLKATA

What did the Tribunal hold?

What were the facts?

What were the issues?

Which sections of the Income-tax Act were involved?

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