Case Number: ITA 1586/DEL/2021
Appellant: Bhaavick Society, Haryana, Panchkula
Respondent: CIT(A) NFAC, Faridabad
Assessment Year: 2016-2017
Case Filed on: 2021-10-29
Order Type: Final Tribunal Order
Date of Order: 2023-03-31
Pronounced on: 2023-03-31
In the matter of Bhaavick Society versus CIT NFAC, the appeal was filed by Bhaavick Society challenging the ad hoc disallowance of expenses by the Assessing Officer (AO) for the assessment year 2016-17. The appellant contended that the disallowance was made without any valid reasoning and should be deleted.
The case was heard before the Delhi ‘SMC’ Bench of the Income Tax Appellate Tribunal, consisting of Judicial Member Shri Saktijit Dey. The appeal was taken up for hearing on March 23, 2023, and the decision was pronounced on March 31, 2023.
The appellant, represented by Ms. Kriti Bindal, CA, argued that the AO made part of the expense disallowance on a purely ad hoc basis without any valid reasoning. The appellant highlighted that their income in the disputed assessment years was within the range of Rs. 20,00,000 to Rs. 25,00,000, and there was no reason to inflate expenses. Therefore, the ad hoc disallowances should be deleted.
The respondent’s representative, Sr. DR Shri Om Prakash, supported the AO’s observations and the order passed by the Commissioner of Income Tax (Appeals) [CIT(A)].
After considering the rival submissions and reviewing the material on record, the tribunal made the following observations:
Based on these observations, the tribunal concluded that the AO’s disallowance of expenses was not justified. The tribunal directed the AO to delete the disputed additions for each of the assessment years under dispute.
The tribunal allowed the appeal filed by Bhaavick Society, directing the AO to delete the ad hoc disallowances made for the assessment year 2016-17. The order was pronounced in the open court on March 31, 2023.
Order:
In the result, the appeal of Bhaavick Society is allowed.
Order pronounced in the open Court on March 31, 2023.
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(SAKTIJIT DEY)
JUDICIAL MEMBER
Date: March 31, 2023
Bhaavick Society vs CIT NFAC: Ad Hoc Expense Disallowance for AY 2016-2017
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