2025 (12) TMI 1586

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....PPL. 81070/2025 (exemption) 3. Exemption is allowed subject to all just exceptions. 4. The application stands dismissed. ITA 774/2025, CM APPL. 81072/2025 5. This appeal under Section 260A of the Income Tax Act, 1961 (the Act) has been filed by the appellant/assessee challenging the order dated 28.06.2023 passed by the Income Tax Appellate Tribunal in ITA 8589/Del/2019 relatable to the Assessment Year (AY) 2016-17 whereby, the Tribunal partially allowed the appeal filed by the appellant. The appellant had raised eight grounds, before the Tribunal which we summarise as below: i. Grounds 1 and 2 are in respect of confirmation of the addition by CIT(A) in respect of difference in valuation of closing stock in the sum of Rs....

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.... of the premises from the existing shop to the new premises on 03.09.2015. The assessee had entered into rent agreement in August 2015 for the said new premises and made payment of rent of Rs. 23,20,000/- during the year under consideration. The Id. AO sought to disallow this rent payment on the ground that no business was carried on by the assessee from the said premises and that no sale of liquor had happened from the said premises during the year. The Id. AO also stated that the application form for shifting the retail vend of licence from existing premises to the new premises was made only on 26.07.2016 which falls in AY 2017-18. This disallowance made by the Id. AO was upheld by the Id. CIT(A). 7. Before us, the Id. AR submitt....

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....essee for the new premises in AY 2017-18. Hence, it goes to prove that the business in the new premises was actually carried on by the assessee only from AY 2017-18 onwards and, accordingly, the rent paid thereon for AY 2017-18 has been duly allowed as deduction by the Id. AO while completing the scrutiny assessment for AY 2017-18 vide order u/s 143(3) dated 03.12.2019. But as far as AY 2016-17, i.e., the year under consideration is concerned, the assessee had not made an application in the prescribed format before the Excise Authorities for shifting of the licence. Hence, the Id. AO was duly justified in holding that the new premises was never utilized by the assessee for the purpose of its business during the year under consideration. Acc....