Disallowance of expenses when the assessee�s case is covered under tax audit report

Last updated: 11 August 2021

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This case involves an appeal by Surender Kumar Jain, who is in the business of importing and trading computer hardware. The Assessing Officer (AO) made a disallowance of certain expenses claimed by the assessee. The Commissioner of Income-tax (Appeals) partially upheld this disallowance, reducing it to 10% of the claimed expenses. The assessee then appealed to the Income Tax Appellate Tribunal, which has now partly allowed the appeal.

Court :
ITAT Delhi

Brief :
Appellant, Surender Kumar Jain (hereinafter referred to as 'the assessee') by filing the present appeal sought to set aside the impugned order dated 29.09.2017 passed by the Commissioner of Income-tax (Appeals)-19, New Delhi.

Citation :
ITA No.7877/Del./2017

IN THE INCOME TAX APPELLATE TRIBUNAL
(DELHI BENCH ‘G’ : NEW DELHI)
(THROUGH VIDEO CONFERENCE)
BEFORE SHRI O.P.KANT, ACCOUNTANT MEMBER
and
SHRI KULDIP SINGH, JUDICIAL MEMBER
ITA No.7877/Del./2017
ASSESSMENT YEAR : 2014-15

Surender Kumar Jain,

M-1/89, Hemkunt Chamber,

Nehru Place,
New Delhi

(APPELLIANT)

ACIT,

Circle-58(1),

New Delhi

(RESPONDENT)

ASSESSEE BY : None
REVENUE BY : Shri Prakash Dubey, Sr. DR
Date of Hearing : 08.07.2021
Date of Order : 27.07.2021
O R D E R

Appellant, Surender Kumar Jain (hereinafter referred to as ‘the assessee’) by filing the present appeal sought to set aside the impugned order dated 29.09.2017 passed by the Commissioner of Income-tax.

2. Briefly stated the facts necessary for adjudication of the controversy at hand are : assessee is individual tax payee bein into the business of Import & Trading of Computer Hardware under the name and style of M/s. Bhavya International.

3. Assessee carried the matter before the Ld. CIT(A) by way of filing the appeal who has restricted the disallowance made by the AO to 10% of the expenses claimed by the assessee by partly allowing the appeal. Feeling aggrieved the assessee has come up before the Tribunal by way of filing the present appeal.

4. We have heard the ld. Departmental Representative for the revenue to the appeal, gone through the documents relied upon and orders passed by the revenue authorities below in the light of the facts and circumstances of the case.

5. Consequently, appeal filed by the assessee is partly allowed.
Order pronounced in open court on this 27TH day of July, 2021.

Please find attached the enclosed file for the full judgement

FAQ :

The main issue was the disallowance of expenses claimed by the assessee, Surender Kumar Jain, when his case was covered under a tax audit report.

The assessee was in the business of Import & Trading of Computer Hardware under the name M/s. Bhavya International.

The AO made a disallowance of expenses claimed by the assessee.

The CIT(A) restricted the disallowance made by the AO to 10% of the expenses claimed by the assessee, partly allowing the assessee's appeal.

The Income Tax Appellate Tribunal partly allowed the appeal filed by the assessee.

Attached File : 1442821_4145_1627372614_7877_d.pdf

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Judgement posted by

Poojitha Raam Vinay

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I simplify complex income tax, TDS, banking, and investment updates into practical insights for taxpayers, salaried professionals, pensioners, and senior citizens. I regularly write on ITR filing, tax compliance, savings schemes, and the latest financial rule changes in India.

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