GUJARAT STATE ELECTRICITY CORPORATION LIMITED,,VADODARA vs. THE ACIT, CIRCLE-1(1)(1), , VADODARA

This matter has been recalled pursuant to the order of the Co-ordinate Bench dated 04.04.2024 in M.A. No. 104/Ahd/2023, filed in connection with for the Assessment Year 2016-17. The Co-ordinate Bench, in its original order dated 19.09.2023, disposed of the appeal filed by the assessee. However, it was subsequently observed that Ground No.4 pertaining to the disallowance of miscellaneous losses amounting to Rs.2.09 crores was not adjudicated in the original order due to inadvertence.

The Ground No. 4 of the assessee is re-produced here – “4.0 The learned Commissioner of Income Tax (Appeals) erred in law and on facts has confirmed the disallowance of Expenses relating to Miscellaneous losses written off amounting to Rs.2,09,74,000/- on the ground that the appellant did not substantiate the nature of expenses.”

The brief facts are that the AO disallowed an amount of Rs.2,09,74,000/- claimed by the assessee as miscellaneous losses written off, citing insufficient substantiation of the nature of these expenses. The AO observed that the claim was based on general particulars without supporting documentary evidence and there was no corroborative material provided to substantiate the claim. The CIT(A) upheld this disallowance on similar grounds.

During the course of the hearing before us, the Authorized Representative (AR) of the assessee pointed out the submission made by the assessee during the course of appellate proceedings. The assessee's submission categorized the "Miscellaneous Losses Written Off" into specific heads as detailed below: