Case Law Details
ITO Vs Roshan Lal Sharma (ITAT Delhi)
Introduction: In a recent ruling, the Income Tax Appellate Tribunal (ITAT) Delhi addressed the case of ITO vs. Roshan Lal Sharma, pertaining to Assessment Years (AY) 2011-12 and 2012-13. The central issue involved a significant disallowance and addition made by the Assessing Officer, contested by the taxpayer and eventually decided by the Commissioner of Income Tax (Appeals) (CIT(A)). The ITAT upheld the CIT(A)’s decision, emphasizing a clerical error in the taxpayer’s Income Tax Return (ITR).
Background: Roshan Lal Sharma, an individual engaged in the business of manufacturing and exporting garments under the name M/s. P6 Design, faced scrutiny for AY 2011-12 and 2012-13. The Assessing Officer (AO) made substantial disallowances and additions, leading to an ex-parte assessment due to non-compliance.
Grounds of Appeal: The Revenue, dissatisfied with the CIT(A)’s order, raised several grounds of appeal for both AYs. These included disallowance of expenses, admission of additional evidence, and disallowance of deductions under section 80C.
CIT(A)’s Decision: The CIT(A), considering the additional evidence filed by the taxpayer under Rule 46A of the Income Tax Rules, 1962, accepted the explanation for non-compliance during assessment proceedings. Admitting the evidence, the CIT(A) proceeded to address the key disallowances and additions.
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