MR. RAJESH KUMAR SUHASARIA,BURDWAN vs. ITO, WARD - 1(4), ASANSOL, ASANSOL

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ITA 1260/KOL/2018Status: DisposedITAT Kolkata28 September 2018AY 2009-102 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal found that the CIT(A)'s conclusion was contrary to the assessment order which stated the assessee was engaged in wholesale business. The Tribunal accepted the assessee's ground and deleted the disallowance of expenses.

What were the facts?

The assessee challenged the reopening of assessment and the disallowance of expenses. The ground regarding reopening was not pressed. The disallowance of Rs. 3,46,788/- was challenged on the basis that the CIT(A) incorrectly concluded the assessee was not engaged in business.

What were the issues?

Whether the disallowance of expenses was justified when the CIT(A)'s reasoning contradicted the assessment order regarding the nature of the assessee's business.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH : KOLKATA

Before: Hon’ble Shri S.S. Godara, JM]

Hearing: 12.09.2018Pronounced: 28.09.2018
1.

This assessee’s appeal for assessment year 2009-10 arises from CIT(A)-Asansol’s order dated 23.02.2018 passed in case no. 12/CIT(A)/ASL/Wd-1(4)/Asl/15-16 in proceedings u/s 143(3) read with section 147 of the Income Tax Act, 1961 (in short the ‘Act’ ). Heard both the parties. Case file perused.

2.

The assessee before us two substantive grounds in its instant appeal. The former substantive ground challenges validity of reopening/reassessment in issue to be mere change of opinion. The same is not pressed during the course of hearing. The assessee’s latter grievance challenges disallowance of expenses amounting to Rs. 3,46,788/-. The CIT(A)’s discussion holds that the impugned expenditure claimed in respect of three business concerns names M/s National Domestic Energu. M/s Sri Jagdamba Fuel and Rajesh Kumar Suhasaria A.Yr. 2009-10 M/s Rani Sati Products as the assessee has not carried out any business. The same is found to be contrary to the assessment order itself assessing the instant taxpayer to be engaged in wholesale business of food grains. The assessee has incurred the impugned expenditure on outstanding loan amounts, bank charges and fees only which may not be mandatorily associated with any business activity. I therefore accept assessee’s instant substantive ground on merits to delete the main disallowance / addition of expenses amounting to Rs. 3,46,788/-.

3.

This assessee’s appeal is partly allowed.

Order pronounced in the Court on 28.09.2018

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