2022 (1) TMI 352

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....or Income Tax Department ORDER 1. This appeal by the assessee is directed against the order dated 3rd April, 2004 passed by the Income-Tax Appellate Tribunal, Cuttack Bench, (ITAT) in ITA No. Nos. 53 of 2001 for the assessment years (AY) 1995-96. 2. While admitting the present appeal on 12th October, 2004, the following question of law was framed for consideration: "Whether the Income Tax App....

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....as a consequence of the impugned order of the Tribunal, a sum of Rs. 80,221/- is payable by the petitioner to the Income Tax Department. We direct that on the petitioner paying 50% of the said amount of Rs. 80,221/-by the end of January, 2005 the balance of the demand shall remain stayed pending disposal of the ITA No.151 of 2004. Urgent certified copy of this order be granted as per the rul....

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....;s appeal for AY 1993-94 and upheld the disallowance of Rs. 60,000/- as ordered by the CIT (A). 6. As far as the present AY 1995-96 is concerned, the extent of disallowance by the AO was Rs. 7,00,000/- respectively. This was restricted by the CIT (A) to Rs. 1,25,000/-. The only reason indicated by the ITAT in the impugned order while interfering with the above determination by the CIT (A) is set ....

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....assessment year 1995-96." 7. The Court finds that the ITAT has in coming to the above conclusion resorted to surmises and conjectures. There is no reason given for restricting the disallowance to 5% of the expenses claimed and thereby arriving at the figure of Rs. 2,56,000 for the AY in question, except stating that the disallowance sustained by the learned CIT (A) is "on the lower side". The IT....