DCIT CIRCLE-1, RANCHI vs. URMILA RCP PROJECTS PVT LTD, RANCHI

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ITA 146/RAN/2019Status: DisposedITAT Ranchi09 June 2025AY 2015-16Bench: the Assessing Officer. It was the further submission that before the Id CIT(A), the assessee had provided a chart which was shown at page 19 of the order of the Id CIT(A), wherein, various details and some chart had been produced. It was the submission that the on the basis of the chart and submission of the assessee, the Id CIT(A) has in para 5.4 of his order at page 26, deleted the addition to an extent of Rs.4,16,26,731/- and has confirmed the disallowance to an extent of Rs.56,18,171/-.1 pages

AI SummaryPartly Allowed

Facts

The revenue disallowed certain expenses as inadmissible contingent liabilities. The assessee provided a chart with details to the CIT(A), who deleted a portion of the addition and confirmed a part of the disallowance. The revenue appealed the deletion, and the assessee appealed the confirmed disallowance.

Held

The Tribunal noted that the assessee did not provide bills for the expenses to the Assessing Officer but did provide evidence to the CIT(A). In the interest of justice, the appeals were restored to the Assessing Officer for examination of the bills.

Key Issues

Whether the deletion of disallowance by the CIT(A) was permissible without proper substantiation by the assessee, and if the matter should be remanded for further examination of evidence.

Sections Cited

Section 3.1, Section 3.2, Section 5.4

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, IN THE INCOME TAX APPELLATE TRIBUNAL,

For Appellant: Shri Manjit Verma, CA

For Respondent: Smt. Rinku Singh, CIT DR

Hearing: 09/06Pronounced: 09/06

is an appeal filed by the assessee against the order of the ld CIT(A), Ranchi dated 31.1.2019 in Appeal No.CIT(A),Ranchi/10260/2017-18 for the assessment year 2015-16.

Smt. Rinku Singh, Ld CIT DR appeared for the revenue and Shri Manjjt Verma, ld AR appeared for the assessee.

It was submitted by ld CIT DR that in the course of assessment, the Assessing Officer had disallowed certain expenses as inadmissible expenses by holding the same as contingent liabilities. The break-up of the expenses is found at pages 5-6 of the assessment order in para 3. The reasons for the disallowance have been brought out by the Assessing Officer in para 3.1 and 3.2 of the assessment order. It was the submission that none of the bills to prove the expenses had been produced before the Assessing Officer. It was the further submission that before the ld CIT(A), the assessee had provided a chart which was shown at page 19 of the order of the ld CIT(A), wherein, various details and some chart had been produced. It was the submission that the on the basis of the chart and submission of the assessee, the ld CIT(A) has in para 5.4 of his order at page 26, deleted the addition to an extent of Rs.4,16,26,731/- and has confirmed the disallowance to an extent of Rs.56,18,171/-. In regard to part of the expenses disallowed to an extent of Rs.4,16,26,731/-, the revenue is in P a g e 2 | 4

It was the submission that no details having been produced before the Assessing Officer, the deletion of the disallowance by the ld CIT(A) was not permissible. It was the further submission that the revenue has no objection, if the issues in this appeal are restored to the file of the Assessing Officer for examination of the expenses subject to the assesseeproviding the details of expenses of the expenses having been incurred.