Case Law Details
Ramku Raningbhai Patgir Vs DCIT (ITAT Ahmedabad)
Introduction: In a recent landmark decision, the Income Tax Appellate Tribunal (ITAT) Ahmedabad delivered a verdict in the case of Ramku Raningbhai Patgir vs. Deputy Commissioner of Income Tax (DCIT). The ITAT’s decision revolved around the partial acceptance of expenses claimed by the assessee, implying that these expenses were related to the business activities of the assessee. The result? The ITAT ruled in favor of the assessee, deleting the disallowance on vehicle, telephone, and salary expenses. This article provides an in-depth analysis of the case, highlighting the grounds of appeal, the assessment proceedings, and the reasoning behind the ITAT’s decision.
Detailed Analysis:
1. Background of the Case: The case pertains to the Assessment Year 2014-15, where the assessee filed an e-return of income, declaring a total income of Rs. 23,21,380/-. The case came under scrutiny due to differences between the sale consideration of a property in the Income Tax Return (ITR) and that reported in the Annual Information Return (AIR).
2. Grounds of Appeal: The assessee raised two key grounds of appeal. Firstly, the appeal challenged the order of the Commissioner of Income Tax (Appeals) [CIT(A)] confirming the addition of Rs. 3,00,620/-. Secondly, it contested the CIT(A)’s decision to confirm the disallowance of Rs. 3,00,620/-, representing 1/3rd of expenses related to vehicle, telephone, and salary.
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