Case Law Details
Edelweiss Asset Management Ltd. Vs ACIT (ITAT Mumbai)
ITAT Mumbai held that CIT(A) cannot exercise the power to enhance u/s. 251(1) where AO has not dealt with the issue and has not applied his mind on the taxability or non-taxability of a specific matter. Accordingly, exercise such power by CIT(A) will be beyond his jurisdiction.
Facts- The assessee is a limited company engaged in the business of investment managing services to mutual funds. The assessee for the AY 2017-18 filed the return of income declaring a loss of Rs. 8,64,09,139/- under the normal provisions of the Income Tax and a loss of Rs. 6,58,19,849/- u/s. 115JB of the Act. The assessee subsequently filed a revised return declaring a total loss of Rs. 10,69,00,642/- under the normal provisions of the Act and the book loss of Rs. 6,58,19,849/- u/s. 115JB of the Act.
The case was selected for scrutiny and the statutory notices were duly served on the assessee. AO completed the assessment u/s. 143(3) of the Act wherein he has made a disallowance of Rs.6,30,553/- u/s. 14A of the Act.
Accordingly, the CIT(A) disallowed the expenditure incurred towards ESOP expenses and enhance to the addition in the appellate order. Aggrieved, the assessee is in appeal before the Tribunal.
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