2020 (10) TMI 368

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....rt vide order dated 31.03.2015 on the following substantial questions of law: (i) Whether on the facts and circumstances of the case, the ITAT is incorrect in upholding the adhoc disallowance of the expenditure by ignoring that these expenses were wholly and exclusively incurred for the business of the appellant? (ii) Whether the respondent was justified in deciding on the reasonability of the expense without giving any finding or proper reasons for questioning the reasonability of the expenses? 2. Facts leading to filing of the appeal briefly stated are that the assessee is a public limited company engaged in cultivation, process and export of coffee. The assessee filed the return of income on 29.10.2005 for Assessment....

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....fied, he can reject the claim in entirety under Section 145(3) of the Act. In support of aforesaid submission, learned counsel for the assessee has placed reliance on decision of the Supreme Court in 'COMMISISONER OF INCOME-TAX VS. WALCHAND AND CO. P. LTD.', (1967) 65 ITR 381 (SC) as well as decision of this court in 'INGERSOLL RAND (INDIA) LTD. VS. THE COMMISSIONER OF INCOME-TAX-I AND ANR.', I.T.ANO.6/2011 AND CONNECTED MATTERS DATED 11.03.2020. 4. On the other hand, learned counsel for the revenue has submitted that the burden is on assessee to prove the fact that the amount was expended for business purposes. It is further submitted that all the authorities have recorded findings of fact on the basis of meticulous appr....

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....entirely a new point raised for the first time before the High Court is not a question involved in a case unless, it goes to the root of the matter. In 'HERO VINOTH (MINOR) VS. SESHAMMAL', (2006) 5 SCC 545 while dealing with the scope of Section 260A of the Act, it was held that this court will not interfere with findings of the court, unless the courts have ignored material evidence or acted on no evidence or have drawn wrong inferences from proved facts by applying the law erroneously or the decision is based on no evidence. 6. In the light of aforesaid well settled legal position, we may advert to the facts of the case. From perusal of para 22 of the order passed by the Tribunal, it is evident that the Tribunal has notice that....