ITAT upholds disallowance of Sponsorship Fee unrelated to business

Yala Construction Co. Pvt Ltd Vs ACIT (ITAT Delhi) Yala Construction Co. Pvt Ltd appealed against the order of ld. CIT(A)-28, New Delhi dated 25.06.2019, contesting various disallowances made by the Learned Assessing Officer (‘Ld. AO’). The appeal encompasses a range of issues, including depreciation, interest on loan, commission, and sponsorship fee. This article provides a detailed analysis of the case and the final verdict rendered by the Income Tax Appellate Tribunal (ITAT) Delhi. Detailed Analysis 1. Depreciation Disallowance: The dispute arose regarding the depreciation claim...