Addition not justified for expense which was not claimed as Expenditure or Deduction

Advocate Akhilesh Kumar Sah

ITO Vs Mother Dairy Fruit & Vegetable Pvt. Ltd. & vice-versa (ITAT Delhi)

Mother Dairy Fruit & Vegetable Pvt. Ltd. Appeal: AO Failed To Establish A Legal Basis For The Addition On Account Of Disallowance Of Interest Expense, When The Assessee Had Not Even Claimed It As Expenditure Or Deduction, Addition Unjustified

Recently, in ITO vs. Mother Dairy Fruit & Vegetable Pvt. Ltd. & vice-versa [ITA No:- 4705/Del/2014 (A.Y.: 2005-06 and C.O. No.-46/Del/2015 Arising from ITA No:- 4705/Del/2014 (A.Y.: 2005-06), decided on 05.02.2019], briefly, return of income was filed by Assessee on 28.10.2005 passed under section 139 of Income Tax Act, 1961 (“ the Act”, for short) declaring total income Nil of Rs. 1,09,04,160/-. The return was processed under section 143(1) of the Act on 30.03.2006. Notice under section 148 of the Act was issued to the Assessee on 19.09.2011, requiring the Assessee to file the return of income. In response, the Assessee filed letter dated 05.10.2011 requesting to treat the aforesaid return filed on 28.10.2005 under section 139 of the Act as return filed in response to notice under section 148 of the Act.

Please become a Premium member. If you are already a Premium member, login here to access the full content.