Case Law Details
Shree Star Carrying Company Vs ITO (ITAT Delhi)
Introduction: In the recent case between Shree Star Carrying Company and ITO, ITAT Delhi made a significant observation regarding the disallowance of expenses based solely on the absence of cross-verification under Section 133(6).
Assessment and Appeal Background: The assessee filed an appeal against the Commissioner of Income Tax (Appeals)-20’s order that arose from an assessment order by the Assessing Officer under Section 143(3) of the Income Tax Act for the Assessment Year 2015-16.
Challenge on Expense Disallowance: The Assessing Officer scrutinized a claim of expenditure towards commission expenses. Notices under Section 133(6) were dispatched to commission beneficiaries. Despite several attempts, full compliance with Section 133(6) wasn’t achieved, leading to a disallowance of commission expenses.
CIT(A)’s Stance: Upon appeal, the CIT(A) upheld the disallowance based on the unattended notices under Section 133(6).
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