SURINDER BABU BUDHIRAJA ,DELHI vs. ITO WARD 36(2), DELHI
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
This assessee’s appeal for Assessment Year 2017-18, arises against the Addl./JCIT(A)-3, Bengaluru’s DIN & order No.
ITBA/APL/S/250/2025-26/1076808001(1) dated 09.06.2025, in proceedings u/s 143(3) of the Income Tax Act, 1961 (in short
“the Act”).
Heard both the parties at length. Case file perused.
It emerges during the course of hearing that both the learned lower authorities have disallowed the assessee’s various expenditure claims; totaling to Rs.63,98,658/- to the extent of 30% thereof coming to Rs.19,45,956/-; in assessment Surinder Babu Budhiraja
2
order dated 29.12.2019 and upheld in the lower appellate discussion.
Suffice to say, it is therefore clear that there is no dispute between the parties regarding allowability of the expenditure claim(s) in principle. This is indeed coupled with the fact that both the learned lower authorities have not even discussed the corresponding market comparables in the assessee’s commission agent business whilst invoking the impugned commission disallowance @ 30%. It is thus deemed appropriate in the larger interest of justice that a lump sum disallowance/addition of Rs.1,00,000/- only herein would be just and proper with a rider that the same shall not be treated as a precedent. The assessee gets relief of Rs.18,19,596/- in other words. Necessary computation shall follow as per law.
This assessee’s appeal is partly allowed. Order Pronounced in the Open Court on 23/09/2025. (Satbeer Singh Godara)
Judicial Member
Dated: 23/09/2025
*Subodh Kumar, Sr. PS*