TaxTMI 
TaxTMI 
2020 (2) TMI 850
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..... On 02.12.2013, this Appeal came to be Admitted on the following substantial questions of law: (I) On the facts and in the circumstances of the case and in law, whether the Tribunal was right in sustaining the additions made of old outstanding sundry credit balances amounting to Rs. 62,24,163/- under Section 68 of the said Act ? (II) On the facts and in the circumstances of the case and in law, whether the Tribunal was right in sustaining the allowance made of Rs. 26,54,158/- out of labour charges on an adhoc basis ? (III) On the facts and in the circumstances of the case and in law, whether the I.T.A.T. had any material to confirm the adhoc disallowance of labour charges of Rs. 26,54,158/- on an assumption that ....
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....llowance is also based upon the failure on the part of the appellant-assessee to challenge the similar disallowance for the preceding year 2008-09. He submits that in such matters, principles of estoppel or acquiescence cannot be applied and therefore, the substantial questions of law are liable to be answered in favour of the appellant-assessee and against the respondent-Revenue. Dr. Daniel referred to certain decisions in support of his contentions. 5. Ms. Linhares, the learned Standing Counsel for the respondent-Revenue supports the impugned judgments and orders made by the ITAT, on the basis of the reasoning reflected therein. She pointed out that the contentions based upon the definition of the "previous year" and the provisi....
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....ny (not being a company in which the public are substantially interested), and the sum so credited consists of share application money, share capital, share premium or any such amount by whatever name called, any explanation offered by such assessee-company shall be deemed to be not satisfactory, unless- (a) the person, being a resident in whose name such credit is recorded in the books of such company also offers an explanation about the nature and source of such sum so credited; and (b) such explanation in the opinion of the Assessing Officer aforesaid has been found to be satisfactory: Provided further that nothing contained in the first proviso shall apply if the person, in whose name the sum referred to there....
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.... to mean as not referring to all the previous years, but, the previous year in relation to the assessment year concerned. Again, this decisions also, to some extent, supports the contentions of Dr. Daniel. 12. The crucial phrase in Section 68 of the IT Act, which provides that the sum so credited in the books and which is not sufficiently explained, may be charged to the income tax as income of the assessee of "that previous year" also lends support to the contentions of Dr. Daniel. 13. For all the aforesaid reasons, we answer the first substantial question of law in favour of the appellant-assessee and against the respondent-Revenue. 14. Insofar as the second and third substantial questions of law are concerned, we find that the A....
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....oner of Income-Tax, U.P., 72 ITR 612, it is held that disallowance should not be on the basis of mere suspicion and further, on applying test of commercial expediency, the reasonableness of the expenditure must be judged from the point of view of the businessman and not on the Income Tax Department. To the similar effect are certain observations in Principal Commissioner of Income-Tax, Mumbai Vs. Chawla Interbild Construction Co. (P) Ltd., [2019] 104 taxmann.com 402 (Bombay). 17. On perusing the impugned judgment made by the Assessing Officer, Commissioner (Appeals) and the ITAT, we are satisfied that all these Authorities have in fact, followed the principles laid down in the aforesaid decisions. This is not a matter where the disallowa....