2025 (8) TMI 304

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....ribunal, "C" Bench, Kolkata (Tribunal) in ITA/2542/Kol/2019 for the assessment year 2012-13. Though the Department has been served, since no standing counsel has been nominated by the Department, we have directed Mr. Prithu Dudhoria, learned standing counsel, to appear for the respondent/department and his appearance shall be regularised and his fee bills shall be honoured. There is a delay of 167 days in filing the appeal. The explanation offered by the appellant/assessee is acceptable apart from the fact that the delay is not inordinate. Hence, the delay in filing the appeal is condoned. The condone delay application, GA 1 of 2025, is allowed. The issue involved in the instant case is whether the learned Tribunal was justified in setti....

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....and Service Tax cannot be considered as further expenses and added back separately for computation of income? iv) Whether the Learned Tribunal failed to consider that tax and duties were never charged as an expense in the profit and loss account and therefore could not reduced the profit estimated by the assessing authority and therefore the question of disallowing of expense that was never claimed at the first place is illegal, arbitrary and dehors the law?" We have heard Mr. Anil Kumar Dugar, learned counsel appearing for the appellant and Mr. Prithu Dudhoria, learned standing counsel appearing for the respondent/department. The assessee filed its return of income for the assessment year under consideration A.Y. 2012-13, disclosing ....

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.... that all the provisions of sections 29 to 43D have been considered and no further addition on account of section 43D is required. Therefore, the additions made by the Assessing Officer under section 43B are not required to be considered. In this regard, the Appellate authority took note of the decisions of the Division Bench of this Court in the case of Commissioner of Income Tax, Kolkata - XVII vs. Shri Arjun Bhowmick, ITAT 134 of 2014 dated 29.8.2024 and allowed the assessee's appeal. The revenue preferred appeal before the learned Tribunal. Learned Tribunal took note of the submissions made by the assessee and held that the matter has to be restored back to the file of the Assessing Officer, who has to verify the claim of the assessee i....

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...., there was no need to look into the provisions of section 40A(3) and Rule 6DD(J) and no disallowance could have been made. In Indwell Constructions vs. Commissioner of Income Tax, [1998] 232 ITR 776 (Andhra Pradesh) it was held that where the books of accounts of the assessee were rejected and its income was estimated by applying proviso to section 145, no separate addition on account of interest and salary paid to the partners could be made to such estimated income. In Commissioner of Income Tax, Trichy vs. Amman Steel & Allied Industries, [2017] 79 taxmann.com 331 (Madras) it was held that when income has been arrived at and had an estimate of turnover and computed applying the gross profit, no expenditure shall be allowed, since the g....