Jitendra Vallabhdas Sanghavi vs. Commissioner of Income Tax

Parties Involved

Facts Summary

Jitendra Vallabhdas Sanghavi filed his return of income on 31.10.2017 reporting total income at Rs.830/-. The Assessing Officer noted a disallowance of interest attributable to a loan advance to M/s. Krypton Investment Consultancy Pvt. Ltd. amounting to Rs.1,11,00,000/- in the assessment order passed u/s. 143(3) for Assessment Year 2014-15. Similar facts existed in the impugned year i.e., Assessment Year 2017-18, and a show cause notice was issued. The assessee made a detailed submission on the e-Assessment portal, which the Assessing Officer acknowledged but did not accept. The assessee appealed to the Commissioner of Income Tax (Appeals), but the appeal was dismissed ex parte due to non-compliance. The assessee then appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the Hon'ble ADDL/JCIT(A) erred in confirming the action of the Assessing Officer in passing the order under section 143(3) merely on the basis of borrowed satisfaction, presumption, and surmises?
• 2. Whether the Hon'ble ADDL/JCIT(A) erred in confirming the disallowance made by Assessing Officer under section 57(iii) amounting to Rs.1,11,00,000/- without considering the facts of the case?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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