Assessee Rajesh Kumar Prop., Panipat ACIT, Panipat

This Income Tax Appellate Tribunal case involves an appeal by Rajesh Kumar (Proprietor of N. W. Overseas) against the ACIT, Panipat, for the assessment year 2012-13. The original assessment significantly increased the assessee's total income by disallowing over £1.24 crore in expenses. The CIT(A) reduced this disallowance by 50%, which the assessee is now challenging. The appeal raises several grounds, including disputes over the disallowance of commission, installation charges, interest expenses, and other miscellaneous business expenses, as well as the denial of deductions under Section 40(a)(ia).

INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH “F”: NEW DELHI
BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER
AND
SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER
(Through Video Conferencing)
ITA No. 1546/De/2017
(Assessment Year: 2012-13)

Rajesh Kumar Prop,
N. W. Overseas, 42,Devi Murti
Coloy, Panipat
(Appellant) 

Vs.

ACIT,
Panipat Circle,
Haryana
(Respondent)

Assessee by : Shri Rakesh Jain, Adv
Shri Gurjeet Singh, CA
Revenue by: Shri Ramesh Kumar, SR. DR
Date of Hearing 24/11/2020
Date of pronouncement 02/12/2020

O R D E R

PER PRASHANT MAHARISHI, A. M.

1. This appeal is filed by the assessee against the order of the ld CIT(A), Karnal [ the ld CIT (A) ] dated 17.01.2017 for the Assessment Year 2012-13 wherein appeal filed by the assessee against the order passed by the Asst Commissioner of income tax, Panipat Circle Panipat [ The ld AO ] u/s 143 (3) of The Income Tax Act 1961 (The Act) dated 30 March 2015 assessing the total income of the assessee at Rs 1,77,77,567/– against the returned income of the assessee at ₹5,296,930/– making disallowance of Rs 1,24,80,637/– was reduced to 50% of the disallowance partly allowing the appeal.

2. The assessee has raised the following grounds of appeal:-

“1. Because the action for making disallowance of commission expenses for Rs. 41,19,626/- (50% of Rs 82,39,253/-), is being challenged on facts & law alongwith the challenge to percentage of disallowance.

2. Because the action for disallowance of installation charges Rs. 2,75,375/- (25% of Rs. 11,01,500/-) is being challenged on facts & law alongwith the challenge to percentage of disallowance.

3. Because the action for declining the benefit of deduction is being challenged on facts & law for non deduction of TDS on the amount of Rs. 1,12,768/- u/s 40(a)(ia) r.w 194C.

4. Because the action for declining the claim of interest expenses of ? 1,00,000/- is being challenged on facts & law.

5. Because the action for upholding the disallowance of payment of interest of Rs. 2,85,600/- (12% of 23,80,000/-) u/s 36(l)(iii) is being challenged on facts & law pursuant to the principle of commercial expediency and business exigency.

6. Because the action for total disallowances of Rs. 14,54,692/- on under mentioned expenses are being challenged on facts & law alongwith percentage of disallowances:-
- Expenses of Diwali Rs. 64,141 /- (10% of 6,41,415/-)
- Business promotion Rs. 76,058/- (10% of 7,60,576/-)
- Conference charges Rs. 1,83,654/- (10% of 18,36,544/-)
- Conveyance Rs. 1,03,578/- (10% of 10,35,775/-)
- Entertainment Rs. 31,955/- (10% of 3,19,550/-)
- Travelling Rs. 9,95,007/- (10% of 99,50,068/-)

To know more in details find the attachment file