This article explores the Income Tax Appellate Tribunal’s handling of ITA 1655/DEL/2021, concerning Agarwal Print Media’s appeal against ad hoc disallowances made by the ITO, Ward-1(1)(1), Meerut for the assessment year 2017-18.
Agarwal Print Media, based in Meerut, faced several ad hoc disallowances in their 2017-18 assessments, which were contested in ITAT, Delhi.
The firm appealed against the decision of the Commissioner of Income-tax (Appeals), which sustained the disallowances made by the ITO regarding various expenses including salaries, wages, and other operational expenses totaling Rs. 5,00,000.
The Tribunal found that the disallowances were made without sufficient evidential basis and without proper justification of the incomplete or missing vouchers, leading to a decision to delete the additions and thus allow the appeal.
The case highlights important considerations for both taxpayers and assessing officers regarding the need for clear and comprehensive documentation and the requirement for authorities to provide adequate reasoning when making disallowances. The decision reaffirms the importance of procedural fairness in tax assessments.
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