Dappled Paper Industries Pvt. Ltd. Vs ACIT (ITAT Delhi)
Property renovation cannot be disallowed merely for the reason that no telephone number, VAT/TIN number has been mentioned in the bill and there is no charges of VAT levied in the bill
Introduction: The Dappled Paper Industries Pvt. Ltd. vs. ACIT case, heard at the Income Tax Appellate Tribunal (ITAT) in Delhi, revolved around the disallowance of property renovation expenses. The case questioned whether such disallowance is justified based on certain discrepancies in the bills. In this article, we will delve into the details, analysis, and conclusions of this significant case.
Detailed Analysis: The case involved an appeal filed by the Assessee against the order dated 24.09.2019 of the CIT(A)-3, New Delhi, arising from an appeal against the order passed under sections 147/143(3) of the Income Tax Act, 1961, by the ACIT, Circle-7(1), New Delhi.
The Assessing Officer reopened the case under section 147 of the Income Tax Act after receiving information regarding the sale of an immovable property by the Assessee. The Assessee responded and filed objections, which were later disposed of by the Assessing Officer. Subsequently, the Assessing Officer made additions to the Assessee’s income, primarily focusing on the deduction of expenses.
The disputed disallowances were as follows:
