2025 (1) TMI 42 - SCH - Income Tax

Disallowance of expenses - finding of the High Court in the impugned judgment is that the appellant assessee, except for producing resolution adopted by the Board, did not produce any material in support of the claim for expenses - HELD THAT - We concur with the view taken by the High Court that apart from resolution of the Board, no other material was placed on record in support of the claim for deduction. Accordingly, we decline to interfere with the impugned judgment. However, we make it clear that the view taken by the High Court in the impugned judgment will remain confined to the Assessment Years 1990-1991, 1991-1992 and 1992-1993 - Assessee appeal dismissed.

Summary

The Supreme Court of India, comprising Hon'ble Mr. Justice Abhay S. Oka and Hon'ble Mr. Justice Augustine George Masih, reviewed an appeal concerning the appellant assessee's failure to substantiate claims for expenses beyond a Board resolution. The appellant's counsel referenced the case of Shiv Raj Gupta vs. Commissioner of Income-tax, arguing that the High Court did not frame a specific question of law before rendering its decision. However, the Supreme Court found that the appellant was adequately notified of the issues before the High Court, dismissing any claims of prejudice.

The Supreme Court agreed with the High Court's determination that no additional material supported the deduction claim, thus declining to interfere with the High Court's judgment. The Court specified that the High Court's findings apply only to the Assessment Years 1990-1991, 1991-1992, and 1992-1993, leaving issues for subsequent years open for pending appeals. Consequently, the appeals were dismissed, and any pending applications were disposed of.