Case Law Details
Jai Trading Company Vs ITO (ITAT Kolkata)
The case of Jai Trading Company vs. Income Tax Officer (ITAT Kolkata) for the assessment year 2014-15 revolves around the disallowance of commission and brokerage expenses claimed by the assessee. This article provides a detailed analysis of the order passed by ITAT Kolkata, examining the grounds of appeal, facts of the case, arguments presented, and the final decision.
Detailed Analysis
The assessee, Jai Trading Company, filed its return of income for the assessment year 2014-15, declaring income of Rs. 9,60,518/-. However, during the assessment proceedings, the Assessing Officer (AO) noticed that the assessee had claimed significant expenses on commission and brokerage amounting to Rs. 84,52,802/-. The AO requested the assessee to furnish details and evidence supporting these claims. Despite repeated opportunities, the assessee failed to provide adequate information to substantiate the expenses.
The dispute escalated when the ld. Commissioner of Income-tax, Appeals, NFAC, Delhi (hereinafter referred to as ‘the ‘ld. CIT(A)’) confirmed the AO’s order, leading to the dismissal of the assessee’s appeal. Dissatisfied with this decision, the assessee approached the Income Tax Appellate Tribunal (ITAT) Kolkata.
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