ITA No. 5983/Mum/2025 & CO No. 325/Mum/2025
Case No: ITA No. 5983/Mum/2025 & CO No. 325/Mum/2025
Court: Income Tax Appellate Tribunal, 'A' Bench Mumbai
Date: 1/22/2026
Parties Involved
appellantDeputy Commissioner of Income Tax
respondentAnand Rathi Commodities Limited
Facts Summary
The assessee, Anand Rathi Commodities Limited, is a company engaged in commodity broking. For Assessment Year 2018-19, the assessee filed its return of income declaring a loss. The case was selected for scrutiny, and the initial assessment accepted the returned loss without making any addition. Subsequently, proceedings for reopening the assessment were initiated, and the reassessment determined a total income by making certain disallowances. Aggrieved by the reassessment order, the assessee app…
Decision in favour of
Assessee
Legal Issues
- 1. Whether the Ld. CIT(A) erred in deleting the disallowance of ₹1,10,75,000 despite the assessee failing to substantiate that the said loss on operation/client claim was incurred wholly and exclusively for the purposes of business.
- 2. Whether the Ld. CIT(A) was justified in allowing the assessee’s claim of ₹1,10,75,000 as deductible under Section 37(1), without proper verification of the genuineness, necessity, and nexus of the expenditure with the business of the assessee.
1 more legal issue analysed in this judgement.
Precedents Relied Upon
2 precedents cited in this judgement.