COMMISSIONER OF INCOME TAX Vs. R.K.SHRIVASTAV (HUF)
HIGH COURT OF DELHI
COMMISSIONER OF INCOME TAX
Click here to view full judgement.
(1.) ITA No. 1565/Del/2001 relevant for the asst. yr. 1996 -97.
(2.) THE assessee had declared his income as Rs. 1,88,46,970, which includes a capital gain of Rs. 1,83,33,275. The return was processed by the AO, who accepted the income shown by the assessee. Subsequently, while computing the
capital gain, the AO noticed that the assessee had claimed deduction on account of selling expenses amounting to Rs.
17,62,841. This was on the basis of an agreement, which the assessee had entered into with M/s Fortune International Ltd. In view of cl. 5 of the said agreement, the AO disallowed the claim of selling expenses since the entire expenditure
was to be borne by the company.
(3.) CONSEQUENTLY , the AO issued a notice to the assessee under s. 154 of the Act proposing to disallow the selling expenses claimed by the assessee and to rectify the assessment order. The assessee filed a reply to the notice but the
AO did not accept the contention urged by the assessee and disallowed his claim for deduction and accordingly passed
an order under s. 154 of the Act.
Feeling aggrieved, the assessee preferred an appeal before the Commissioner of Income -tax (Appeals) [CIT(A)]. The appeal was allowed on the ground that dis -allowance was beyond the scope of rectification permissible under s. 154 of
Copyright © Regent Computronics Pvt.Ltd.