KOHLI BROTHERS,KAROL BAGH, NEW DELHI vs. INCOME TAX OFFICER, WARD 51(4), NEW DELHI, PRATYAKSH KAR BHAWAN, CIVIC CENTRE, J.L. NEHRU MARG, NEW DELHI
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
This assessee’s appeal for Assessment Year 2015-16, arises against the CIT(A)/NFAC, Delhi’s DIN & order No.
ITBA/NFAC/S/250/2023-24/1059508087(1) dated 09.01.2024, 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.
Coming to the first and foremost issue between the parties regarding rejection of the assessee’s books of accounts u/s 145(3) of the Act, learned counsel wishes is not to press for the same after vehement arguments for the reason that the NP rate remains the same before and after the above rejection. Rejected accordingly subject to a rider that the same shall not Kohli Brothers
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be treated as a precedent against the assessee in any other assessment year.
Now coming all the remaining issue between the parties i.e. rent disallowance, bad debts disallowance and alleged personal expenditure etc. involving varying sums. The Revenue could hardly dispute that once the assessee’s books of accounts have been rejected, no such revenue expenditure claim could be further disallowed going by Indwell Construction Vs. CIT (1998) 232 ITR 776(AP). Allowed accordingly.
No other grounds or argument has been pressed.
This assessee’s appeal is partly allowed. Order Pronounced in the Open Court on 27/08/2025. (Satbeer Singh Godara)
Judicial Member
Dated: 27/08/2025
*Subodh Kumar, Sr. PS*