2025 (1) TMI 865

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.... learned lower authorities are bad in law and bad in facts. 2. Assessment Order passed by the learned Assessing Officer is ab-initio void inasmuch as, reasons recorded, if any prior to issue of notice u/s 148 of the I.T. Act, 1961 were not provided to the appellant. 3. The notice issued under section 148 of the I.T.Act, 1961 being a vague notice is ab-initio void. 4. The notice issued under section 148 of the I.T.Act, 1961 is ab-initio void, for want of sanction by designated authority. Consequently, assessment order passed in pursuance of said notice is also ab-initio void 5. The learned lower authorities have grossly erred in disallowing / confirming disallowance of expenses to the extent of Rs. 6,78,98....

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....nt to the email of the assessee requesting for an immediate compliance as there was no response to the second notice issued. Summon u/s 131 of the Act was issued calling upon the assessee to appear for the reassessment proceedings. Subsequently, one more letter was issued asking upon assessee to furnish the details as called for. In compliance, assessee vide letter dated 12.12.2017 filed details such as computation of income, financial statements, copy of acknowledgment of return filed on 11.12.2017 declaring total income of Rs. 2,54,132/-. 2.3. The Ld. AO after verification of the details observed that, assessee has earned income from rent and interest income during the year under consideration and has claimed expenses in the books of a....

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.... under: Description Amount Bank Charges 4,962 Bank Loan Interest 34,695 Computer Expenses 5,645 Depreciation as per Income Tax 56,382 Directors remuneration 4,20,000 Electricity Charges 54,504 Filing Fees 24,500 Income Tax Appeal Filing Fees 5,611 Legal & Professional charges 7,500 Membership & Subscription 11,025 Office Expenses 18,127 Office Rent 20,316 Payment to auditors 13,788 Repairs & Maintenance charges 8,640 Telephone Charges 34,147 Vehicle Insurance 3,720 Vehicle Expenses 38,699   7,62,261 5.1. He submitted that, out of the above expenses the Ld. AO allowed expenses to the extent of Rs. 26,899/- being appeal fi....

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....n case of ITO vs. Mokul Finance (P) Ltd. 110 TTJ (Del) 445, CIT vs. Kriti Resorts Pvt. Ltd. 60 DTR (HP) 138. 5.5 The Ld. A.R. thus submitted, that the claim of the assessee being in accordance with law cannot be denied. He also placed reliance on the decision of Hon'ble Bombay High Court in case of Hindustan Chemical Works Ltd. vs. CIT reported in 124 ITR 561 wherein Hon'ble Bombay High Court held that, even though no income was actually earned for sometime from the assets which were in possession of the company that fact was not relevant for considering the assessee's claim of deduction of expenditure incurred for holding these assets. 5.6 On the contrary, the Ld. D.R. relied on the orders passed by the authorities below. I have p....