9911796707
TMI Blog2018 (5) TMI 1016X X X X Extracts X X X X X X X X Extracts X X X X ..... "1. The learned CIT (A) -38 er red in conf i rming the act ion of the Ld. DCIT - Central Circle 40, in computing disallowance u/s 37 of Income Tax Act, 1961 of aggregate expenses of Rs. 2,03,597/- being 10% of Entertainment expense of Rs. 6,70,060/- and Business Promotion expense of Rs. 13,65,908/-, being personal expenses on estimated basis for want of verification, disregarding the fact that enti re expenses were duly supported by bi l ls, vouchers and generally paid by cheque and the expenses were incurred in ordinary course of bus ines s and al lowed as expenses , as in pas t and therefore the disallowance made of Rs. 2,03,597/- be deleted. 2. The learned CIT(A) erred in holding that the expenses of Rs. 15,079/- in the name of Narr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being heard, the liabi lity of interest u/s 234B of the Income Tax Act, 1961 whereof is denied by the appel lant and therefore it is prayed that the interest u/s 234B of the Income Tax Act, 1961 be recomputed at Rs. Nil, after giving credit of the claim of TDS of Rs. 71,01,041/- from brokerage income of Rs. 6,65,40,557/- (Net of Service Tax) as claimed in Return of income f iled. 6. Your appellant prays for the leave to add, amend, alter, delete or modify any of the grounds of Appeal ." 3. At the outset, the Ld. Counsel for the assessee submitted that ground Nos.4 & 5 are not pressed as has been requested vide letter dated 02.03.17 on the plea that assessee has got relief in the order giving effect to the order of Ld. CIT(A). Therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o assessment was made under section 143(3)of the Act prior to the date of search except processing of return of income filed u/s 139(1) of the Act. The ld CIT(A) observed that it was stated in the assessment order that the pending assessment was abated due to search and seizure action u/s 132(1) of the Act and thus the scope of assessment expands to the original jurisdiction as well as jurisdiction conferred u/s 153A of the Act. The AO may conclude the assessment based on the findings of the search and also on the basis of any material existing or brought on record of the AO during the assessment proceedings and finally dismissed the appeal. 7. Now the Ld. A.R. vehemently submitted before us that in the present case the return was filed on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Trib.) 3. Nenshi L. Shah vs. Dy. CIT ITA No.3577, 3581, 3583 & 3575/Mum/2011, A.Y. 2003-04 dt.24/5/2017 (Mum.) (Trib.) 4. Atul Barot vs. Dy. CIT (2014) 65 SOT 83 (URO) (Mum.) (Tri.) 5. ACIT vs. Jayendra P. Jhaveri (2014) 65 SOT 118 (Mum.) (Trib.) 6. M/s. Ideal Appliances Co. Pvt. Ltd. vs. DCIT ITA No.173 to 177/M/2015, A.Y.s 2005-06 to 2009- 10 dt.31.12/2015 (Mum.) (Trib.) 8. The Ld. D.R., on the other hand, relied on the order of Ld. CIT(A) by submitting that in this case no assessment was framed under section 143(3) of the Act prior to the search and therefore, the incriminating material was not necessary for making additions to the present case of the assessee as the AO powers are same as in the normal assessment proceedin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of assessment which were final on the date of search is wrong and can not be sustained. Therefore, in our opinion, the addition in this case is wrong and cannot be justified. In the case of CIT vs. Gurinder Singh Bawa (supra) the Hon'ble Bombay High Court held that once an assessment was not pending but had attained finality for a particular year it could not be subject to proceedings under section 153A of the Act, if no incriminating materials were gathered in the course of search or during the proceedings under section 153A which were contrary to and were not disclosed during the regular assessment proceedings. In this case, the assessee filed the return of income which was processed under section 143(1) of the Act and no noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inate bench of the Tribunal has allowed the appeal of the assessee. The Ld. A.R. submitted that since the assessee has incurred previous expenses for the purpose of business wholly and exclusively and therefore any disallowance on adhoc basis just on the whims and fancies of the AO and after confirmation by the Ld. CIT(A) was against the spirit of law and same should be deleted following the decision of co-ordinate bench of the Tribunal in assessee's own case. 14. The Ld. D.R., on the other hand, relied on the authorities below. 15. We have heard the rival submissions of both the parties and perused the material on record including the decision cited by the Ld. A.R. in ITA No.5015/M/2006 for A.Y. 2003-04. We also find that the similar exp ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
