Case Number: ITA 852/DEL/2021
Appellant: Dr. Dinesh Singh, New Delhi
Respondent: ACIT, Circle-63(1), New Delhi
Assessment Year: 2016-17
Result: Appeal Partly Allowed
Case Filed on: 2021-07-15
Order Type: Final Tribunal Order
Date of Order: 2022-08-26
Pronounced on: 2022-08-26
Dr. Dinesh Singh, a medical professional, filed an appeal against the order of the CIT(A)-33, New Delhi, dated 18.09.2020, pertaining to the assessment year 2016-17. The primary dispute was regarding the addition of expenses claimed under business promotion and entertainment.
The case was heard by the Delhi Bench ‘B’ of the Income Tax Appellate Tribunal (ITAT), with Shri Shamim Yahya, Accountant Member, and Shri Yogesh Kumar US, Judicial Member, presiding over the matter. The hearing took place on 23.08.2022, and the order was pronounced on 26.08.2022.
The key issues in the appeal were the addition of Rs. 10,27,478 and Rs. 3,45,978 under business promotion and entertainment expenses, respectively, and the disallowance of depreciation of Rs. 5,228.
Dr. Dinesh Singh, represented by Sh. S.K. Goyal, CA, argued that the CIT(A)’s order was passed without application of mind and was bad in law. He contended that the additions were made on presumptions and without any specific evidence. He also highlighted that the vouchers and records had been lost, as reported to the Assessing Officer (AO).
The Revenue, represented by Sh. R.S. Yadav, Sr. DR, supported the order of the lower authorities and argued that the additions were justified based on the facts and circumstances of the case.
The Tribunal noted that the CIT(A) accepted the lost information report and granted substantial relief to the assessee. However, it sustained 75% of the addition related to business promotion and entertainment expenses. The Tribunal agreed with the assessee’s alternative plea to limit the disallowance to 25% of these expenses, given the nature of the profession and work of the appellant.
Regarding the disallowance of depreciation of Rs. 5,228, the Tribunal remitted the issue back to the AO to consider the matter afresh in light of the documents that were sought to be produced before the CIT(A). The AO was directed to grant adequate opportunity to the assessee to present the necessary documents.
The Tribunal partly allowed the appeal, directing that the disallowance of business promotion and entertainment expenses be limited to 25%. The issue of disallowance of depreciation was remanded back to the AO for reconsideration.
In conclusion, ITA No. 852/DEL/2021 was partly allowed, providing relief to Dr. Dinesh Singh by limiting the disallowance of expenses and remanding the issue of depreciation for further examination.
Order pronounced in the open court on 26th August 2022.
Sd/- (YOGESH KUMAR US)
JUDICIAL MEMBER
Sd/- (SHAMIM YAHYA)
ACCOUNTANT MEMBER
Date: 26.08.2022
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(A)
5. DR: ITAT
Assistant Registrar, ITAT, New Delhi
Dr. Dinesh Singh vs ACIT: Dispute over Addition of Business Promotion and Entertainment Expenses
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