Jamshedpur Transport Co. Ltd. Vs ITO (ITAT Kolkata)
Assessee filed its return of income and the the assessment framed u/s 143(3), resulting in an addition of Rs.55,000/- to the declared income. While framing the assessment order, no specific issue was discussed by the AO regarding the addition madeto the total income of the assessee. the assessment order is silent on disallowance relating to Rs.55,000/- as made by the AO. During the course of assessment proceedings, the assessee stated by a letter that expenditure on account of club entrance fees of Rs.11.80 lakhs had been added back to the computation to the income at the time of filing of the return whereas such expenditure was to be allowed & thereby, the assessee made a fresh claim & pleaded before the AO to allow the expenditure to the extent of Rs.11.80 lakhs by reducing the total income to that extent. However, the AO Officer ignored this submission of the assessee & no fact has been mentioned in the assessment order & the assessment was completed without considering the claim of the assessee.
On appeal, CIT(A) deleted the addition of Rs.55,000/- observing that the AO made the said addition without application of mind. No relief was granted regarding the claim of deduction of club entrance fees, by simply dismissing the ground.
