THE ITO, WARD-1(2)(3), AHMEDABAD vs. MOHAMMEDARIF IBRAHIMBHAI SHAIKH, AHMEDABAD

Bench: Shri Pramod M Jagtap & Ms. Madhumita Roy

disallowance can be made under Section 40A(3) of the Act. Further that, no ITA Nos.1115 & 962/Ahd/2019 & CO No.10/Ahd/2022(in ITA No. 1115/A/19) Asst. Years –2012-13 & 2014-15 payment exceeding Rs. 20,000/- was made to any party in a day and therefore, there is no violation of the provision of Section 40A

THE ITO, WARD-1(2)(3), AHMEDABAD vs. MOHAMMEDARIF IBRAHIMBHAI SHAIKH, AHMEDABAD

Bench: Shri Pramod M Jagtap & Ms. Madhumita Roy

disallowance can be made under Section 40A(3) of the Act. Further that, no ITA Nos.1115 & 962/Ahd/2019 & CO No.10/Ahd/2022(in ITA No. 1115/A/19) Asst. Years –2012-13 & 2014-15 payment exceeding Rs. 20,000/- was made to any party in a day and therefore, there is no violation of the provision of Section 40A

SHRI GIRISHBHAI VADILAL SHAH,,AHMEDABAD vs. THE DCIT, CIRCLE-4(1)(2),, AHMEDABAD

In the result, appeal preferred by the assessee in ITA No

Bench: Ms. Suchitra Raghunath Kamble, Judical Member & Shri Narendra Prasad Sinhaआयकर अपील सं./I.T.A. Nos. 330, 331 & 332/Ahd/2020 (िनधा"रण वष" िनधा"रण वष" िनधा"रण वष" / Assessment Years : 2014-15, 2015-16 & 2016-17) िनधा"रण वष" Girishbhai Vadilal Shah Dcit बनाम बनाम/ बनाम बनाम 139, V R Shah Smruti Circle – 4(1)(2), Vs. Shikshan Mandir, Nr. Ahmedabad Dharnidhar Derasar, Vasna, Ahmedabad, Gujarat, 380007 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Abjps3102P (Appellant) .. (Respondent) Shri Jaimin Shah, Ar अपीलाथ" ओर से /Appellant By : ""यथ" क" ओर से/Respondent By : Ms. Saumya Pandey Jain, Sr. Dr Date Of Hearing 26/06/2024 Date Of Pronouncement 15/07/2024 O R D E R Per Shri Narendra Prasad Sinha, Am: These Three Appeals Are Filed By The Assessee Against The Order Of The Commissioner Of Income Tax (Appeals)-8, Ahmedabad, (In Short The ‘Cit(A)’), (In Short ‘The Cit(A)’) All Dated 16.03.2020 For The Assessment Year 2014-15, 2015-16 & 2016-17. As The Issues Involved In The Three Appeals Are Common, They Were Heard Together & Are Being Disposed Vide This Common Order.

Section 40A(2) talks about disallowance of any expenditure which is excessive and unreasonable having regard to the fair market value of goods, services or facilities. ITA Nos. 330, 331 & 332/Ahd/2020 [Shri Girishbhai Vadilal Shah vs. DCIT] A.Ys. 2014-15 to 2016-17 - 9

SHRI GIRISHBHAI VADILAL SHAH,,AHMEDABAD vs. THE DCIT, CIRCLE-4(1)(2),, AHMEDABAD

In the result, appeal preferred by the assessee in ITA No

Bench: Ms. Suchitra Raghunath Kamble, Judical Member & Shri Narendra Prasad Sinhaआयकर अपील सं./I.T.A. Nos. 330, 331 & 332/Ahd/2020 (िनधा"रण वष" िनधा"रण वष" िनधा"रण वष" / Assessment Years : 2014-15, 2015-16 & 2016-17) िनधा"रण वष" Girishbhai Vadilal Shah Dcit बनाम बनाम/ बनाम बनाम 139, V R Shah Smruti Circle – 4(1)(2), Vs. Shikshan Mandir, Nr. Ahmedabad Dharnidhar Derasar, Vasna, Ahmedabad, Gujarat, 380007 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Abjps3102P (Appellant) .. (Respondent) Shri Jaimin Shah, Ar अपीलाथ" ओर से /Appellant By : ""यथ" क" ओर से/Respondent By : Ms. Saumya Pandey Jain, Sr. Dr Date Of Hearing 26/06/2024 Date Of Pronouncement 15/07/2024 O R D E R Per Shri Narendra Prasad Sinha, Am: These Three Appeals Are Filed By The Assessee Against The Order Of The Commissioner Of Income Tax (Appeals)-8, Ahmedabad, (In Short The ‘Cit(A)’), (In Short ‘The Cit(A)’) All Dated 16.03.2020 For The Assessment Year 2014-15, 2015-16 & 2016-17. As The Issues Involved In The Three Appeals Are Common, They Were Heard Together & Are Being Disposed Vide This Common Order.

Section 40A(2) talks about disallowance of any expenditure which is excessive and unreasonable having regard to the fair market value of goods, services or facilities. ITA Nos. 330, 331 & 332/Ahd/2020 [Shri Girishbhai Vadilal Shah vs. DCIT] A.Ys. 2014-15 to 2016-17 - 9

SHRI GIRISHBHAI VADILAL SHAH,,AHMEDABAD vs. THE DCIT, CIRCLE-4(1)(2),, AHMEDABAD

In the result, appeal preferred by the assessee in ITA No

Bench: Ms. Suchitra Raghunath Kamble, Judical Member & Shri Narendra Prasad Sinhaआयकर अपील सं./I.T.A. Nos. 330, 331 & 332/Ahd/2020 (िनधा"रण वष" िनधा"रण वष" िनधा"रण वष" / Assessment Years : 2014-15, 2015-16 & 2016-17) िनधा"रण वष" Girishbhai Vadilal Shah Dcit बनाम बनाम/ बनाम बनाम 139, V R Shah Smruti Circle – 4(1)(2), Vs. Shikshan Mandir, Nr. Ahmedabad Dharnidhar Derasar, Vasna, Ahmedabad, Gujarat, 380007 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Abjps3102P (Appellant) .. (Respondent) Shri Jaimin Shah, Ar अपीलाथ" ओर से /Appellant By : ""यथ" क" ओर से/Respondent By : Ms. Saumya Pandey Jain, Sr. Dr Date Of Hearing 26/06/2024 Date Of Pronouncement 15/07/2024 O R D E R Per Shri Narendra Prasad Sinha, Am: These Three Appeals Are Filed By The Assessee Against The Order Of The Commissioner Of Income Tax (Appeals)-8, Ahmedabad, (In Short The ‘Cit(A)’), (In Short ‘The Cit(A)’) All Dated 16.03.2020 For The Assessment Year 2014-15, 2015-16 & 2016-17. As The Issues Involved In The Three Appeals Are Common, They Were Heard Together & Are Being Disposed Vide This Common Order.

Section 40A(2) talks about disallowance of any expenditure which is excessive and unreasonable having regard to the fair market value of goods, services or facilities. ITA Nos. 330, 331 & 332/Ahd/2020 [Shri Girishbhai Vadilal Shah vs. DCIT] A.Ys. 2014-15 to 2016-17 - 9

ITO, WARD-2(1)(3),, AHMEDABAD vs. HEMATO ONCOLOGY CLINIC (AHMEDABAD)P.LTD.,, AHMEDABAD

In the result, the appeal is dismissed

disallowances under section 40A(2) are thus simply not permissible. For this short reason alone, the impugned relief granted by the CIT(A) must be upheld. 8. Even on merits of the matter, the case of the revenue must fail. There is an inherent fallacy in the approach of the Assessing Officer. The fallacy is this. In the cases

SHALIGRAM INFRA PROJECTS LLP ( LTD. LIABILITY PARTNERSHIP),AHMEDABAD vs. THE JCIT (OSD), CENTRAL CIRCLE-2(2), AHMEDABAD

Appeals are partly allowed

Bench: S/Shri T.R. Senthil Kumar & Makarand V.Mahadeokarit(Ss)A No.167/Ahd/2021 Asstt.Year : 2017-18 & Asst.Year : 2018-19 Shaligram Infra Projects Llp Vs. The Jcit (Osd) 4Th Floor, Office No.401-402 Central Cir.2(2) B/H. Dishman House Ahmedabad. Opp: Sankalp Grace Ii, Ambli Ahmedabad. Pan: Acpfs 7047 A It(Ss)A No.194,195 & 196/Ahd/2021 Asstt.Year : 2015-16, 2016-17 & 2017-18 & Asst.Year : 2018-19 The Jcit (Osd) Vs. Shaligram Infra Projects Llp Central Cir.2(2) 4Th Floor, Office No.401-402 Ahmedabad. B/H. Dishman House Opp: Sankalp Grace Ii, Ambli Ahmedabad.

disallowance of interest under section 40A(2)(b) was made on the ground that the assessee had paid interest at 15% to related parties while to others it had paid only 9

RAMCHAND BHULCHAND RAJAI,BHAVNAGAR vs. THE DY.CIT.,CIRCLE-1, , BHAVNAGAR

Bench: Mrs. Annapurna Gupta & Shri T.R. Senthil Kumarआयकर अपील सं / Ita No. 167/Ahd/2024 िनधा"रण वष"/Assessment Year : 2009-10 बनाम बनाम बनाम बनाम Ramchand Bhulchand Rajai, The Deputy Commissioner C/O. Jayesh Tyres, Vs. Of Income-Tax, Opp. Railway Station, Circle-1, Bhavnagar Bhavnagar-364001 Pan : Abmpr 4841 D अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) िनधा"रती की ओर से / Assessee By : Shri B.R. Popat, Ar ""थ" की ओर से / Revenue By: Shri Prateek Sharma, Sr Dr सुनवाई की तारीख /Date Of Hearing : 22/04/2024 घोषणा की तारीख /Date Of Pronouncement: 15/07/2024 आदेश/O R D E R Per Annapurna Gupta

Section 40A(3) of the Act as find mention in Rule 6DD of the Income-tax Rules, 1962. That, with respect to the loading and unloading charges, it was pointed out that while the expenditure disallowed by the Assessing Officer was Rs.12,12,400/-, the same was sustained by the appellate authorities at Rs.1,81,860/- on a lump

ROTOMAG MOTORS & CONTROLS PVT. LTD.,,ANAND vs. THE DEPUTY COMMISSIONER OF INCOME TAX, ANAND CIRCLE,, ANAND

In the result, the appeal is allowed in the terms indicated above

9. In the present case, there is no finding whatsoever about the fair market value of the services rendered by the directors. The only reason for making the disallowance is that enhancement in director’s fees is not coupled with corresponding increase in turnover or profitability but that is wholly irrelevant in the context of Section 40A

SANGATH INFRASTRUCTURE PVT. LTD,AHMEDABAD vs. THE DCIT, CIRCLE-4(1)(1), AHMEDABAD

In the result, the appeal of the assessee is dismissed

Bench: Smt. Annapurna Gupta & Shri Siddhartha Nautiyal

disallowance of such expenditure shall be made under the proposed sub-section (3) of section 40A or the payment shall be deemed to be the profits and gains of business or profession under the proposed sub-section (3A) of section 40A,as the case may be. EXCEPTION TO ABOVE PROVISION: The provisions of this section are subject to exceptions

M/S. PIPRANI EQUIPMENT PVT. LTD,AHMEDABAD vs. THE ITO, WARD-3(1)(2), AHMEDABAD

In the result, the appeal of the assessee is allowed

Bench: Smt.Annapurna Guptaasstt.Year : 2015-16 M/S.Piprani Equipment P.Ltd. Ito, Ward-3(1)(2) Ff-4, Amar Complex Vs Ahmedabad. Nr.Amin Equipments P.Ltd. Sarkhej Road Ahmedabad. Pan : Aagcp 6503 L

disallowance under section 40A(3) 9 of the Act. He relied upon various decision of the Hon’ble High Courts

PIYUSHBHAI GORDHANBHAI PATEL,VADODARA vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 3(1), VADODARA

In the result, the appeal of the assessee is partly allowed

Bench: Smt.Annapurna Guptaasstt.Year : 2016-17 Shri Piyush Gordhanbhai Patel Acit, Cir.3(1) Prop: V.G. Automobiles Vs Vadodara. N.H.No.8, Nr.Dhara Petrol Pump At Vemali Vadodara 390 024. Pan : Adzpp 9289 N

9. The contention raised by the assessee in ground no.1 is that the disallowance of excess interest made by the AO and confirmed by the ld.CIT(A) under section 40A

DY.COMMISSIONER OF INCOME TAX, CIRCLE-1(1)(1),, AHMEDABAD vs. M/S. ADANI PORT & SPECIAL ECONOMIC ZONE LTD.,, AHMEDABAD

In the result, the appeal of the Assessing Officer for the assessment year 2010-11 is dismissed

40A(3), 43B, etc. of the Act and other specific disallowances, related to the business activity against which the Chapter VI-A deduction has been claimed, result in enhancement of the profits of the eligible business, and that deduction under Chapter VI-A is admissible on the profits so enhanced by the disallowance. 4. Accordingly, henceforth, appeals

DY. COMMISSIONER OF INCOME TAX , CIRCLE-1(1)(1),, AHMEDABAD vs. M/S. ADANI PORT & SPECIAL ECONOMIC ZONE LTD.,, AHMEDABAD

In the result, the appeal of the Assessing Officer for the assessment year 2010-11 is dismissed

40A(3), 43B, etc. of the Act and other specific disallowances, related to the business activity against which the Chapter VI-A deduction has been claimed, result in enhancement of the profits of the eligible business, and that deduction under Chapter VI-A is admissible on the profits so enhanced by the disallowance. 4. Accordingly, henceforth, appeals

M S HOSTEL,NEW SAMA SAVLI ROAD vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 1(3), VADODARA, AAYAKAR BHAVAN, VADODARA

In the result, appeal preferred by the assessee is allowed

Bench: Smt. Annapurna Gupta & Ms. Madhumita Roy

disallowance of expenses under Section 40 of the Act since both the Section 37 & 40A of the Act are attracted if the expenditure is not found to have been incurred exclusively for the business purpose and is excess as compare to the fair market value is found to be acceptable. Moreso, the appellant firm also deducted tax on the said

ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE 2(1)(1), VADODARA, VADODARA vs. ORIENTAL ENTERPRISES PRIVATE LIMITED,, PCC NOTIFIED AREA

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokar

9. During the assessment proceedings, the AO scrutinized various expenses claimed by the assessee. It was found that certain expenses appeared to be personal in nature and were disallowed under Section 37 of the Income Tax Act, 1961. The total disallowance amounted to Rs.1,28,273/-. Expenses in Question were Gift Articles of Rs.64,382/- and Entertainment Expenses of Rs.63

ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE-2(1)(1), VADODARA, VADODARA vs. ORIENTAL ENTERPRISES PRIVATE LIMITED, PCC NOTIFIED AREA

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokar

9. During the assessment proceedings, the AO scrutinized various expenses claimed by the assessee. It was found that certain expenses appeared to be personal in nature and were disallowed under Section 37 of the Income Tax Act, 1961. The total disallowance amounted to Rs.1,28,273/-. Expenses in Question were Gift Articles of Rs.64,382/- and Entertainment Expenses of Rs.63

ORIENTAL ENTERPRISE PRIVATE LIMITED,VADODARA vs. THE ACIT, CIRCLE-2(1)(2), VADODARA

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokar

9. During the assessment proceedings, the AO scrutinized various expenses claimed by the assessee. It was found that certain expenses appeared to be personal in nature and were disallowed under Section 37 of the Income Tax Act, 1961. The total disallowance amounted to Rs.1,28,273/-. Expenses in Question were Gift Articles of Rs.64,382/- and Entertainment Expenses of Rs.63