2021 (4) TMI 1350

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....Shri Sunil Kumar Pandey (D.R) ORDER Per Shri S.S. Godara, J.M. : These assessee's appeals for the Asst. Years 2010-11 & 2011-12 arise from the Commissioner of Income Tax (Appeals)-6, Hyderabad's separate orders dt.12.04.2017 & 17.09.2015 passed in case Nos.0225/2015-16/CIT(A)-6/17-18 & 1378/2014-15/CIT(A)-6/15-16, in proceedings under Section 143(3) of Income Tax Act, 1961 ('the Act'); respecti....

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....ttention the CIT(A) identical detailed discussion upholding the Assessing Officer's action invoking Section 40(a)(ia) disallowance in Assessment Year 2010-11 with further directions to the Assessing Officer that the said expenses ought to be allowed only to the extent it reduces assessee's net profits to "Zero" only as follows : " 06.5 Ideally, the assessee should have earned some profit in ....

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....3(3), the Assessing Officer while giving effect to this order is accordingly directed to compute the income at 'Zero' only." 4. We have given our thoughtful consideration to rival pleadings against and in support of the CIT(A)'s aforesaid directions restricting the impugned disallowance(s) only to the extent they reduce to assessee's net profit to 'zero' only. We find no reason to sustain the....

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....in the said subsequent year. We adopt the very reasoning herein as well mindful of the fact that if the impugned expenditure claimed results the assessee's income computed in 'loss', its expenditure claim which is otherwise allowable ought not to be accepted as not within the four corners of the fiscal statute. There is also no such restrictions clause in Chapter VI of the Act to this effect a....