ITAT Kolkata Judgments — January 2025

The Tribunal held that the Assessing Officer exceeded the scope of limited scrutiny without proper approval and that the assessee had provided sufficient supporting documents. Therefore, the disallowances were not sustainable.

The Tribunal held that the CIT(A)'s findings were relevant and that the AO erred in making the addition without considering that the receipts were part of the business turnover and disclosed in the return. The addition made under Section 69A was not sustainable.

The tribunal, noting the assessee's election to avail the Vivad se Vishwas Scheme, granted the request for withdrawal of the appeal. In accordance with the scheme's provisions, the appeal was dismissed as withdrawn, with liberty granted to the assessee to file a Miscellaneous Application for restoration if future facts warrant it.

The Tribunal held that the reassessment notice was issued beyond the 3-year period and that the Assessing Officer failed to obtain prior approval from the PCCIT as required under Section 151 for cases exceeding 3 years but within 10 years. The notice was deemed invalid.

The Income Tax Appellate Tribunal dismissed the Revenue's appeal in limine. The Tribunal held that the appeal was contrary to the Department's policy decision, as the tax effect was below the monetary limit of Rs. 60,00,000/- prescribed by CBDT Circular No. 9/2024 for appeals before the Appellate Tribunal.

The Tribunal condoned the delay in filing the appeal. The grounds relating to disallowance under Section 14A were dismissed as the Revenue did not press them. However, the ground regarding the disallowance of sales promotion expenses was allowed, as the assessee provided sufficient evidence for the expenditure incurred after acquiring a new unit.

The Tribunal noted that the assessee was not given an adequate opportunity to present documentary evidence before the Ld. Addl./JCIT(A) and failed to file an application under Rule 46A. In the interest of justice, the Tribunal set aside the CIT(A)'s order and remanded the case back for fresh adjudication, granting the assessee a final opportunity to submit necessary documents.