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| The Tax Publishers2019 TaxPub(DT) 7547 (Mum-Trib) INCOME TAX ACT, 1961
Section 37(1)
Where sum claimed by assessee inter alia represents the balance in the loan accounts which have been closed pursuant to realization of assets secured from the borrower after incurring the various expenditure and AO had no occasion to examine the details including the various entries subsequent to which this amount was arrived at, therefore, matter was remanded back to AO to decide afresh after providing opportunity of being heard to assessee.
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Business expenditure - Disallowance of foreclosure expenses - Allowability -
Assessee claimed expenses towards foreclosure charges. AO held that assessee failed to prove that applicable TDS has been deducted and paid for, therefore, even if the said expenditure were allowable under section 37 (1), still the same needs to be disallowed under section 40(a)(ia). Held: The sum claimed by assessee inter alia represents the balance in the loan accounts which have been closed pursuant to realisation of assets secured from borrower after incurring various expenditure. AO had no occasion to examine the details including the various entries subsequent to which this amount was arrived at. CIT(A) in summary manner allowed assessee's appeal. He had never referred to any detail submitted by the assessee. In the interest of justice, matter was remanded back to AO to decide afresh after providing opportunity of being heard to assessee.
REFERRED : The CIT v. Gopal Purohit (2010) 336 ITR 287 (Bom) : 2010 TaxPub(DT) 1272 (Bom-HC) L & T Finance Limited v. Dy. CIT (2018) 192 TTJ 0009 (Mum) : 2018 TaxPub(DT) 1137 (Mum-Trib) Gopal Purohit. v. Jt. CIT (2009) 29 SOT 117 (Mum) : 2009 TaxPub(DT) 1431 (Mum-Trib) and CIT v. Gopal Purohit [SLP (Civil) No. 32891 of 2010, dt. 15-11-2010]
FAVOUR : In assessee's favour by way of remand
A.Y. : 2010-11
IN THE ITAT, MUMBAI BENCH
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