Case Law Details
Prity Tubes Pvt. Ltd. Vs JCIT (ITAT Kolkata)
Coming to the next issue of sales promotion and advertisement expenses, we note that despite several queries and opportunities made available by the authorities below, the assessee has not been able to establish the nexus between the expenses incurred and the business of the assessee. Assessee has all along submitted only the ledger account copy, which are not sufficient to understand the nature and the purpose of expenses incurred as well as its nexus with the benefits accruing to the business of the assessee. In the interest of justice and fair-play and to give another opportunity to the assessee, we find it proper to remit the matter back to the file of Ld. AO on this issue and direct the assessee to submit necessary documentary evidences required by the authorities below for substantiating its claim for the deductibility of the expenses. Ld. AO is also directed to provide reasonable opportunity of being heard to the assessee for making necessary submissions in this respect. Upon verification of the submissions made by the assessee and based on satisfaction therefrom, Ld. AO may assess the allowability of these expenses in accordance with the provisions of law. Accordingly, this ground of appeal is allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
This appeal by the assessee is directed against the order of ld. CIT(A)-5, Kolkata vide Appeal No. N256/CIT(A)-5/Cir-14(1)/16-17/Kol dated 14.10.2019 for A.Y. 2014-15 passed against the assessment order u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) by ACIT, Circle-14(1),Kolkata dated 28.12.2016.
2. The grounds of appeal taken in this appeal are reproduced as under:
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