RAM MANOHAR,MEERUT vs. ITO,WARD-1(2)(3), MEERTU

This assessee’s appeal for assessment year 2017-18, arises against the Commissioner of Income Tax (Appeals)/National
Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2023-24/1059915104(1), dated
19.01.2024 involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
2. Heard both the parties. Case file perused.
3. It emerges during the course of hearing that both learned lower authorities have disallowed 50% of the assessee’s regular
Assessee by Sh. Paramjeet Singh, CA
Department by Sh. Sanjay Kumar, Sr. DR
Date of hearing
06.01.2025
Date of pronouncement
06.01.2025
2 | P a g e business expenses including salaries, rent, freight, repair &
maintenance etc., coming to Rs.29,09,890/- in the course of assessment framed on 1st June, 2021, as upheld in the lower appellate discussion.
4. It is noticed in this factual backdrop that neither the assessee appears to have discharged his onus of proving all the impugned expenditure to have been incurred wholly and exclusive for the purpose of his business expenditure under section 37(1) of the Act, nor the department could quote even the comparable instances indicating the same to be excessive or unreasonable, as the case may be. It is deemed appropriate in the larger interest of justice in these peculiar facts to restrict the impugned 50% disallowance of assessee’s regular expenditure to that @ 10% only with a rider that the same shall not be treated as a precedent. Necessary computation shall follow as per law.
4. This assessee’s appeal is partly allowed.
Order pronounced in the open court on 6th January, 2025 (SATBEER SINGH GODARA)

JUDICIAL MEMBER

Dated: 6th January, 2025. RK/-