2022 (1) TMI 352

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.....T.K.Satpathy, Sr. Standing Counsel for 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 c....

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....om the said order passed under section 254 of the I.T. Act, 1961 that 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.1....

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....e expenses claimed by the Assessee. Admittedly, the ITAT dismissed the Department'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 t....

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....he disallowance will work out to Rs. 2,37, 800 in assessment year 1994-95 and Rs. 2,56,000 in 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, excep....