ITAT allows the appeal of Orange Associates Pvt. Ltd against disallowance of Rs.12,60,000,

Last updated: 08 January 2021

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Quick Summary

The Income Tax Appellate Tribunal (ITAT) has allowed the appeal filed by Orange Associates Pvt. Ltd. The case concerned a disallowance of Rs.12,60,000 made under Section 40A(2)(b) of the Income Tax Act for the Assessment Year 2012-13. The tribunal's decision overturns the prior ruling by the Commissioner of Income Tax (Appeals).

Court :
ITAT New Delhi

Brief :
This appeal is preferred by the assessee against order dated 19.01.2017 passed by the Learned Commissioner of Income Tax (Appeals)-8, New Delhi {CIT(A)} for Assessment Year 2012-13.

Citation :
ITA No.2091/Del/2017

IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH ‘E’: NEW DELHI
(Through Video Conferencing)

BEFORE,
SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER
AND
SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER

ITA No.2091/Del/2017
(ASSESSMENT YEAR 2012-13)

Orange Associates Pvt.
Ltd.
(Formerly One Source
Education Pvt. Ltd.)
9, Near Telephone
Exchange, Daryaganj,
New Delhi-110 002.
PAN –AAACS 1177K
(Appellant)

Vs.

Asst. CIT,
Circle-22(1),
New Delhi
(Respondent)

Appellant By Sh. Tanpreet Kohli, CA.
Respondent by Ms. Rakhi Vimal, Sr. DR
Date of Hearing 05.01.2021
Date of Pronouncement 05.01.2021

ORDER

PER SUDHANSHU SRIVASTAVA, JM:

This appeal is preferred by the assessee against order dated 19.01.2017 passed by the Learned Commissioner of Income Tax (Appeals)-8, New Delhi {CIT(A)} for Assessment Year 2012-13.

The sole grievance of the assessee is upholding the disallowance of Rs.12,60,000/- u/s 40A (2) (b) of the Income Tax Act, 1961 (hereinafter called ‘the Act).

2.0 The brief facts of the case are that the assessee company is engaged in the business of publishing books for the school students. The return of income was filed declaring taxable income of Rs.3,99,96,730/-. After processing of the return, the assessee’s case was selected for scrutiny.

To know more in details find the attachment file

FAQ :

The main issue was the disallowance of Rs.12,60,000 made by the tax authorities under Section 40A(2)(b) of the Income Tax Act, which was upheld by the CIT(A).

This judgement relates to the Assessment Year 2012-13.

The ITAT allowed the appeal filed by Orange Associates Pvt. Ltd., meaning the disallowance of Rs.12,60,000 was overturned.

Orange Associates Pvt. Ltd. is engaged in the business of publishing books for school students.

The disallowance was made under Section 40A(2)(b) of the Income Tax Act, 1961.