RAM NARAYAN CONTRACTOR,NEW DELHI vs. ACIT CIRCLE-62(1), NEW DELHI

ITA 956/DEL/2020Status: DisposedITAT Delhi27 July 2023AY 2014-155 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the assessee's representative had not been heard by the CIT(A) before the ex-parte order was passed. Therefore, the matter was restored to the CIT(A) for de-novo adjudication after hearing the assessee.

What were the facts?

The assessee firm claimed deduction for interest on capital and salary to partners. The assessment was initially made under section 143(3) r.w.s 144 of the Income Tax Act, 1961. The CIT(A) rejected the claim, citing provisions of Section 184(5) and 185.

What were the issues?

Whether interest on capital and salary to partners are allowable deductions when the assessment is made under section 143(3) r.w.s 144, and whether the CIT(A) erred in rejecting the claim without affording the assessee an opportunity to be heard.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144,Section 154,Section 184,Section 185

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘G’: NEW DELHI

For Appellant: Mr. KVSR Krishana, Advocate
For Respondent: Mr. Anuj Garg, Sr. DR
Hearing: 24/07/2023Pronounced: 27/07/2023

PER YOGESH KUMAR U.S., JM: This appeal by Assessee is filed against the order of Learned

Commissioner of Income Tax (Appeals)-20, New Delhi [Ld. CIT(A)”,

for short], dated 13/02/2020 for Assessment Year 2014-15. Grounds taken in this appeal are as under:

“1. Interest on Capital of Rs.29,68,351/- and Salary to Partner Rs.59,94,429/- not allowed as assessment has been made u/s 144 {actually it was made u/s 143(3) r.w.s 144 of the Income Tax Act, 1961}. Ram Narayan Contractor vs. ACIT

2.

AO has wrongly rejected application u/s 154 of income tax Act and C.I.T has also wrongly rejected the appeal requesting to allow interest on Partner's Capital and Salary to Partner as assessment has been vide u/s 143 (3) r.w.s 144 and not

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 154

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

Recent GST High Court judgments

Search GST case law →