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TMI Blog2023 (7) TMI 1034X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee. ADIT(CPC) has not passed a speaking order while making the disallowance. ADIT(CPC) has disallowed the expenses stating that the disallowance may be due to not furnishing the break up of expenditure or error in total. Narration given in the Order u/s 143(1) that the ADIT(CPC)has himself not understood the exact reason for disallowance . We are of the opinion that the disallowance made by the ADIT(CPC) is bad in law and unsustainable. Therefore, we direct the AO to delete the said addition. - ITA No.929/PUN/2022 - - - Dated:- 1-3-2023 - SHRI S. S. GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER For the Appellant : Shri Prasanna Joshi AR For the Respondent : Shri M. G. Jasnani DR ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome Tax (Appeal) with a delay of 3 years. The assessee filed condonation petition. The Ld.CIT(A) dismissed the appeal of the assessee on the ground of delay. Aggrieved by the order of the Commissioner of Income Tax(A) the assessee filed appeal before this tribunal. The ld. Authorised Representative Submission : 3. The ld.AR submitted a paper book. The ld.AR vehemently submitted that ld.CIT(A) has dismissed the appeal of the assessee only on the ground of delay without appreciating fact that assessee initially had filed an appeal against the order under section 143(3) in time before the ld.CIT(A). At that time, the assessee was directed to withdraw the appeal and filed the appeal again before the ld.CIT(A) against the order under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... There has been adjustment under section 143(1) computing the total income at Rs. 37,83,040/-. We have gone through the order under section 143(1) which is part of paper book, however, we could not understand the reason for such adjustment. We have already mentioned that ld.DR also could not explain us the reason for such adjustment. It is observed that the ADIT(CPC) has disallowed the assessee s claim of other expenses of Rs. 12,73,746/- . The relevant part of the order u/s 143(1) is reproduced here as under : 5.1 In the reason mentioned in the order u/s 143(1) for the disallowance is as under : 6. We have perused the entire order u/s 143(1) but could not find any evidence of an opportunity of hearing being provided to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er clause (c); and (e) the amount of refund due to the assessee in pursuance of the determination under clause (c) shall be granted to the assessee: Provided that an intimation shall also be sent to the assessee in a case where the loss declared in the return by the assessee is adjusted but no tax or interest is payable by, or no refund is due to, him: Provided further that no intimation under this sub-section shall be sent after the expiry of one year from the end of the financial year in which the return is made. Explanation. For the purposes of this sub-section, (a) an incorrect claim apparent from any information in the return shall mean a claim, on the basis of an entry, in the return, (i) of an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll, as soon as may be after the notification is issued, be laid before each House of Parliament. 7. The ADIT(CPC) has disallowed the amount of Rs. 12,73,746/- claimed by the assessee under the head other expenses. The ADIT(CPC) has not given any reason for making such disallowance. The Ld.DR also could not explain us the reason for the impugned disallowance. 7.1 The Hon ble Bombay High Court has held in the case of Khatau Junkar Ltd. 196 ITR 55 (Bom) as under Quote What the ITO has done is to reject the basis on which the company has filed its accounts and calculated its book profits for the relevant accounting year. The ITO has not accepted the transfer of the above amount to the share revaluation reserve account, although, acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... portunity to the assessee. The ADIT(CPC) has not passed a speaking order while making the disallowance. The ADIT(CPC) has disallowed the expenses stating that the disallowance may be due to not furnishing the break up of expenditure or error in total. Thus, it is clear from the narration given in the Order u/s 143(1) that the ADIT(CPC)has himself not understood the exact reason for disallowance . In these facts and circumstances of the case, we are of the opinion that the disallowance made by the ADIT(CPC) is bad in law and unsustainable. Therefore, we direct the AO to delete the said addition. 9. In the result, appeal of the Assessee is Allowed. Order pronounced in the open Court on 1st March, 2023. - - TaxTMI - TMITax - Income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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