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Income Tax Appellate Tribunal, KOLKATA ‘SMC’ BENCH, KOLKATA
Before: Sri J. Sudhakar Reddy]
IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA ‘SMC’ BENCH, KOLKATA [Before Sri J. Sudhakar Reddy, Accountant Member] Assessment Year: 2012-13 Energy Properties Pvt. Ltd………………………………………..……..………………………………Appellant 2, N.C. Dutta Sarani 5th Floor Unit-1 Kolkata – 700 001 [PAN : AABCE 9664 Q] I.T.O. Ward-5(3), Kolkata..……..…….…….…………………………………………….………..Respondent Aaykar Bhawan P-7, Chowringhee Square Kolkata – 700 069 Appearances by: Shri N.M. Bhansali, Advocate, appeared on behalf of the assessee. Shri Sailen Samaddar, Addl. CIT, DR, appearing on behalf of the Revenue Date of concluding the hearing : May 22nd, 2018 Date of pronouncing the order : May 25th, 2018 O R D E R Per J. Sudhakar Reddy :-
This is an appeal filed by the assessee directed against the order of the Commissioner of Income Tax (Appeals)-2, Kolkata, (hereinafter the ‘Ld. CIT(A)’), dt. 06/12/2017, passed u/s 250 of the Income Tax Act, 1961 (hereinafter the ‘Act’), relating to Assessment Year 2012-13.
The only issue that arises for my consideration is as to whether the disallowance of the expenditure of Rs.1,93,418.54/- and depreciation of Rs.1,42,421/- on motor car was wrongly disallowed by the Assessing Officer. 2.1. The assessee is a company and is in the business of job work and real estate development. The entire expenditure has been disallowed on the ground that the assessee failed to explain the nexus between the expenditure and the earning of income shown in the profit and loss account. The assessee submitted that it is a company and the expenditure in question such as statutory audit fees rates and taxes, trade license fees and other expenses are necessary and connected with the Assessment Year: 2012-13 Energy Properties Pvt. Ltd business of the assessee. He submits that disallowance is bad in law, as the company cannot comply with the requirements of law in case it does not incur such expenditure.
On a perusal of the nature of expenditure disallowed, I am of the considered opinion that the disallowance is bad in law. Hence I direct the Assessing Officer to allow the same.
In the result, appeal of the assessee is allowed. Kolkata, the 25th day of May, 2018. Sd/- [J. Sudhakar Reddy] Accountant Member Dated: 25.05.2018 {SC SPS} Copy of the order forwarded to: 1. Energy Properties Pvt. Ltd 2, N.C. Dutta Sarani 5th Floor Unit-1 Kolkata – 700 001 2. I.T.O. Ward-5(3), Kolkata Aaykar Bhawan P-7, Chowringhee Square Kolkata – 700 069 3. CIT(A)- 4. CIT- , 5. CIT(DR), Kolkata Benches, Kolkata.