ITO v. Lake Palace Hotels and Motels Pt Ltd (Calcutta Tribunal)

13 TTJ 216Income Tax Appellate Tribunal#9360 most cited

What is ITO v. Lake Palace Hotels and Motels Pt Ltd (Calcutta Tribunal) authority for?

Disallowance of expenses based solely on previous years' disallowances is invalid. The Assessing Officer must provide fresh justification for disallowances in the current year.

11

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2024 to 2026.

Also referred to as

ITO v. Lake Palace Hotels and Motels Pt Ltd · 13 TTJ 216 · ITAT · disallowance of expenses · rule of consistency · section 37(1) · revenue expenditure · assessment procedure · rectification and mistakes apparent

Sections most often in play

Section 37(1)Section 32Section 143(3)Section 147Section 148Section 142(1)Section 143(2)Section 154

Issues it is cited on

construction peproject completion methodrule of consistencypenalty u/s 271(1)(c)section 32revenue expendituresection 37(1)double taxationsection 37section 154salaryincome from other sources

Judgments citing ITO v. Lake Palace Hotels and Motels Pt Ltd (Calcutta Tribunal)

Girish Raghavan, Mumbai vs. Asstt. CIT-26(1), Mumbai

In the result, the appeal is allowed

ITA 6955/MUM/2025[2014-15]Status: DisposedITAT Mumbai04 Mar 2026AY 2014-15

Bench: Justice (Retd.) C V Bhadang, Hon’Ble & Shri Arun Khodpia, Hon’Blegirish Raghavan, Acit 26(1), 201-B Eternia, 1, Mumbai Vs. Hiranandani Gardens Mumbai 400 076. Pan : Ahcpr2792R (Appellant) (Respondent)

For Appellant: Shri Devendra JainFor Respondent: Shri Swapnil Choudhary
Section 142(1)Section 143(2)Section 41(1)

…e following decisions: i. ACIT v. Arthur Anderson & Co. [2006] 5 SOT 393 (MUM.) 69 Smt. Gurmitkaur Amarjit Singh Bhasin v. ITO (559/Mum/2014] ii. ACIT v. Ganpati Enterprises Ltd. 32 Taxmann.com 262 (Del. Tri.) iii. ITO v. Lake Palace Hotels & Motels Pvt. Ltd 13 TTJ 216 (Jaipur Tri.) iv. Tripat Kaur v. ACIT (3244/Del/2012] v. Sunita Mine Chem Ind. v. ITO [2008] 23 SOT 39 (JODH.)(URO) vi. Simbhaoli Sugar Mills Ltd. v. ACIT. [2007] 17 sot 90 (Delhi) vii. Continental Seeds & Chemicals Ltd. v. ACIT [2003] 1 SOT 393 (Del) 14. The learned DR has supported the impugned order. It is submitted that the burden to establis…

ITO, Ward-6(1), Mohali vs. Quarkcity India Pvt. Ltd., Mohali

In the result, the appeal filed by the Revenue is dismissed

ITA 266/CHANDI/2023[2017-18]Status: DisposedITAT Chandigarh19 Feb 2025AY 2017-18

Bench: SHRI. VIKRAM SINGH YADAV (Accountant Member), SHRI. PARESH M. JOSHI (Judicial Member)

For Appellant: Shri Vineet Thakral Advocate And Shri Raman Aggarwal, C.AFor Respondent: Smt. Kusum Bansal, CIT, DR

…cided that each year's assessment is final only for that year and does not govern later years because it determines the tax for a particular period, we also relied on the Judgment in the case of ITO Vs. Lake Palace Hotels and Motels Pt Ltd (Calcutta Tribunal) 13 TTJ 216 in which it was decided that mere disallowance of similar expenses earlier is not a valid ground for making disallowance in the subsequent years. On the other hand, the Assessee Company has provided all the material and basis to support its allocation. The Assessing Officer vide an order passed u/s 154 of the Income Tax Act, 1961 on 26.03.2012, re…

ITO, Ward-6(1), Mohali vs. Quarkcity India Pvt. Ltd., Mohali

In the result, the appeal filed by the Revenue is dismissed

ITA 265/CHANDI/2023[2016-17]Status: DisposedITAT Chandigarh19 Feb 2025AY 2016-17

Bench: SHRI. VIKRAM SINGH YADAV (Accountant Member), SHRI. PARESH M. JOSHI (Judicial Member)

For Appellant: Shri Vineet Thakral Advocate And Shri Raman Aggarwal, C.AFor Respondent: Smt. Kusum Bansal, CIT, DR

…cided that each year's assessment is final only for that year and does not govern later years because it determines the tax for a particular period, we also relied on the Judgment in the case of ITO Vs. Lake Palace Hotels and Motels Pt Ltd (Calcutta Tribunal) 13 TTJ 216 in which it was decided that mere disallowance of similar expenses earlier is not a valid ground for making disallowance in the subsequent years. On the other hand, the Assessee Company has provided all the material and basis to support its allocation. The Assessing Officer vide an order passed u/s 154 of the Income Tax Act, 1961 on 26.03.2012, re…

ITO, Ward-6(1), Mohali vs. Quarkcity India Pvt. Ltd., Mohali

In the result, the appeal filed by the Revenue is dismissed

ITA 264/CHANDI/2023[2015-16]Status: DisposedITAT Chandigarh19 Feb 2025AY 2015-16

Bench: SHRI. VIKRAM SINGH YADAV (Accountant Member), SHRI. PARESH M. JOSHI (Judicial Member)

For Appellant: Shri Vineet Thakral Advocate And Shri Raman Aggarwal, C.AFor Respondent: Smt. Kusum Bansal, CIT, DR

…cided that each year's assessment is final only for that year and does not govern later years because it determines the tax for a particular period, we also relied on the Judgment in the case of ITO Vs. Lake Palace Hotels and Motels Pt Ltd (Calcutta Tribunal) 13 TTJ 216 in which it was decided that mere disallowance of similar expenses earlier is not a valid ground for making disallowance in the subsequent years. On the other hand, the Assessee Company has provided all the material and basis to support its allocation. The Assessing Officer vide an order passed u/s 154 of the Income Tax Act, 1961 on 26.03.2012, re…

ITO, Ward-6(1), Mohali vs. Quarkcity India Pvt. Ltd., Mohali

In the result, the appeal filed by the Revenue is dismissed

ITA 263/CHANDI/2023[2014-15]Status: DisposedITAT Chandigarh19 Feb 2025AY 2014-15

Bench: SHRI. VIKRAM SINGH YADAV (Accountant Member), SHRI. PARESH M. JOSHI (Judicial Member)

For Appellant: Shri Vineet Thakral Advocate And Shri Raman Aggarwal, C.AFor Respondent: Smt. Kusum Bansal, CIT, DR

…cided that each year's assessment is final only for that year and does not govern later years because it determines the tax for a particular period, we also relied on the Judgment in the case of ITO Vs. Lake Palace Hotels and Motels Pt Ltd (Calcutta Tribunal) 13 TTJ 216 in which it was decided that mere disallowance of similar expenses earlier is not a valid ground for making disallowance in the subsequent years. On the other hand, the Assessee Company has provided all the material and basis to support its allocation. The Assessing Officer vide an order passed u/s 154 of the Income Tax Act, 1961 on 26.03.2012, re…

ITO, Ward-6(1), Mohali vs. Quarkcity India Pvt. Ltd., Mphali

In the result, the appeal filed by the Revenue is dismissed

ITA 262/CHANDI/2023[2013-14]Status: DisposedITAT Chandigarh19 Feb 2025AY 2013-14

Bench: SHRI. VIKRAM SINGH YADAV (Accountant Member), SHRI. PARESH M. JOSHI (Judicial Member)

For Appellant: Shri Vineet Thakral Advocate And Shri Raman Aggarwal, C.AFor Respondent: Smt. Kusum Bansal, CIT, DR

…cided that each year's assessment is final only for that year and does not govern later years because it determines the tax for a particular period, we also relied on the Judgment in the case of ITO Vs. Lake Palace Hotels and Motels Pt Ltd (Calcutta Tribunal) 13 TTJ 216 in which it was decided that mere disallowance of similar expenses earlier is not a valid ground for making disallowance in the subsequent years. On the other hand, the Assessee Company has provided all the material and basis to support its allocation. The Assessing Officer vide an order passed u/s 154 of the Income Tax Act, 1961 on 26.03.2012, re…

ITO, Ward-6(1), Mohali vs. Quarkcity India Pvt. Ltd., Mphali

In the result, the appeal filed by the Revenue is dismissed

ITA 261/CHANDI/2023[2012-13]Status: DisposedITAT Chandigarh19 Feb 2025AY 2012-13

Bench: SHRI. VIKRAM SINGH YADAV (Accountant Member), SHRI. PARESH M. JOSHI (Judicial Member)

For Appellant: Shri Vineet Thakral Advocate And Shri Raman Aggarwal, C.AFor Respondent: Smt. Kusum Bansal, CIT, DR

…cided that each year's assessment is final only for that year and does not govern later years because it determines the tax for a particular period, we also relied on the Judgment in the case of ITO Vs. Lake Palace Hotels and Motels Pt Ltd (Calcutta Tribunal) 13 TTJ 216 in which it was decided that mere disallowance of similar expenses earlier is not a valid ground for making disallowance in the subsequent years. On the other hand, the Assessee Company has provided all the material and basis to support its allocation. The Assessing Officer vide an order passed u/s 154 of the Income Tax Act, 1961 on 26.03.2012, re…

ITO, Ward-6(1), Mohali vs. Quarkcity India Pvt. Ltd., Mphali

In the result, the appeal filed by the Revenue is dismissed

ITA 260/CHANDI/2023[2011-12]Status: DisposedITAT Chandigarh19 Feb 2025AY 2011-12

Bench: SHRI. VIKRAM SINGH YADAV (Accountant Member), SHRI. PARESH M. JOSHI (Judicial Member)

For Appellant: Shri Vineet Thakral Advocate And Shri Raman Aggarwal, C.AFor Respondent: Smt. Kusum Bansal, CIT, DR

…cided that each year's assessment is final only for that year and does not govern later years because it determines the tax for a particular period, we also relied on the Judgment in the case of ITO Vs. Lake Palace Hotels and Motels Pt Ltd (Calcutta Tribunal) 13 TTJ 216 in which it was decided that mere disallowance of similar expenses earlier is not a valid ground for making disallowance in the subsequent years. On the other hand, the Assessee Company has provided all the material and basis to support its allocation. The Assessing Officer vide an order passed u/s 154 of the Income Tax Act, 1961 on 26.03.2012, re…

ITO, Ward-6(1), Mohali vs. Quarkcity India Pvt. Ltd., Mphali

In the result, the appeal filed by the Revenue is dismissed

ITA 259/CHANDI/2023[2010-11]Status: DisposedITAT Chandigarh19 Feb 2025AY 2010-11

Bench: SHRI. VIKRAM SINGH YADAV (Accountant Member), SHRI. PARESH M. JOSHI (Judicial Member)

For Appellant: Shri Vineet Thakral Advocate And Shri Raman Aggarwal, C.AFor Respondent: Smt. Kusum Bansal, CIT, DR

…cided that each year's assessment is final only for that year and does not govern later years because it determines the tax for a particular period, we also relied on the Judgment in the case of ITO Vs. Lake Palace Hotels and Motels Pt Ltd (Calcutta Tribunal) 13 TTJ 216 in which it was decided that mere disallowance of similar expenses earlier is not a valid ground for making disallowance in the subsequent years. On the other hand, the Assessee Company has provided all the material and basis to support its allocation. The Assessing Officer vide an order passed u/s 154 of the Income Tax Act, 1961 on 26.03.2012, re…

ITO, Ward-6(1), Mohali vs. Quarkcity India Pvt. Ltd., Mohali

In the result, the appeal filed by the Revenue is dismissed

ITA 258/CHANDI/2023[2009-10]Status: DisposedITAT Chandigarh19 Feb 2025AY 2009-10

Bench: SHRI. VIKRAM SINGH YADAV (Accountant Member), SHRI. PARESH M. JOSHI (Judicial Member)

For Appellant: Shri Vineet Thakral Advocate And Shri Raman Aggarwal, C.AFor Respondent: Smt. Kusum Bansal, CIT, DR

…cided that each year's assessment is final only for that year and does not govern later years because it determines the tax for a particular period, we also relied on the Judgment in the case of ITO Vs. Lake Palace Hotels and Motels Pt Ltd (Calcutta Tribunal) 13 TTJ 216 in which it was decided that mere disallowance of similar expenses earlier is not a valid ground for making disallowance in the subsequent years. On the other hand, the Assessee Company has provided all the material and basis to support its allocation. The Assessing Officer vide an order passed u/s 154 of the Income Tax Act, 1961 on 26.03.2012, re…

Bhaskar Danve Patil, Jalna vs. Assistant Commissioner of Income Tax, Circle, Jalna

In the result, the appeal of the assessee is partly allowed for statistical purposes with the directions given above

ITA 285/PUN/2024[2016-17]Status: DisposedITAT Pune14 Oct 2024AY 2016-17

Bench: Shri R.K. Panda & Ms. Astha Chandra

For Appellant: Mrs. M.N. KulkarniFor Respondent: Shri Ramnath P. Murkunde
Section 143(1)Section 143(2)Section 234B

…d committed no error in deleting entire addition made by Assessing Officer. d. In the case of Swadeshi Commercial Co. Ltd. vs. CIT, the Calcutta high court held that addition made on estimated basis is bad in law. e. In case of Ito v/s Lake palace hotel P Ltd 13 TTJ 216, it is held that estimated disallowance is to be deleted. So, considering the above case laws and fact of the cases, please delete the addition made and oblige. 2. Disallowance of Other expenses The learned AO has disallowed 10% of other expenses of Rs.1.17,61,231/- being expenses not fully verifiable. The following are expenses: Brick expenses 9,…

ITO v. Lake Palace Hotels and Motels Pt Ltd (Calcutta Tribunal) (13 TTJ 216) — Cited in 11 Judgments | BharatTax