AJAY BHATIA,KANPUR vs. ASSESSING OFFICER 2(2)(5) ETAWAH, ETAWAH

PDF · subscribers
ITA 250/AGR/2024Status: DisposedITAT Agra06 February 2025AY 2014-15Bench: SHRI SATBEER SINGH GODARA (Judicial Member), SHRI M. BALAGANESH (Accountant Member)3 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that recourse to section 154 rectification for disallowing expenditure requiring detailed inquiries is not sustainable in law. The lower authorities' rectification order was reversed on this ground.

What were the facts?

The Assessing Officer and CIT(A) used section 154 rectification to disallow revenue expenditure, specifically interest and remuneration payments, as not allowable under section 37(1). The assessee appealed this decision.

What were the issues?

Whether section 154 rectification can be used to disallow expenditure that requires detailed inquiry. The validity of disallowing revenue expenditure through a rectification proceeding.

Which sections of the Income-tax Act were involved?

Section 154,Section 37(1)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, AGRA BENCH, “SMC” AGRA

Before: SHRI SATBEER SINGH GODARA & SHRI M. BALAGANESH

Hearing: 06.02.2025Pronounced: 06.02.2025

Assessment Year: 2014-15 Vs. Assessing Officer-2(2)(5), Sh. Ajay Bhatia, 117/H-2/126, Pandu Nagar, Etawah, Kanpur Uttar Pradesh PAN :ACBPB9601R (Appellant) (Respondent) Assessee by Sh. Anurag Sinha, Adv. Department by Sh. Shailender Shrivastava, Sr. DR Date of hearing 06.02.2025 Date of pronouncement 06.02.2025 ORDER

PER SATBEER SINGH GODARA, JM

1.

This assessee’s appeal for assessment year 2014-15 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/250/2024-25/1064749066(1) dated 09.05.2024 involving proceedings under section 154 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 the learned lower authorities have taken recourse to section 154 rectification for the purposes of disallowing the assessee’s revenue expenditure representing interest and remuneration payments etc. amounting to Rs.1,56,552/-; as not allowable under section 37(1) of the Act, in the Assessing Officer’s order dated 23rd of January, 2019, as upheld in the lower appellate discussion.

More judgments on Section 154

All 8,676 judgments and leading authorities on Section 154 →

Recent GST High Court judgments

Search GST case law →