Sourabh Vijay Gadale vs. ITO

Parties Involved

Facts Summary

The appellant, Sourabh Vijay Gadale, is engaged in the business of manufacturing school uniforms and trading in allied products under the name and style 'M/s. Tushar Dresses'. For the assessment year 2012-13, the appellant filed a return of income on 28.09.2012, disclosing a total income of Rs.9,12,480/-. During the scrutiny proceedings, it was revealed that the appellant made a payment of Rs.6,75,000/- to Shri Satish Laxman Gadale, Proprietor of Prestige Garments & Tailoring Firm. The case was reopened under section 148 of the Income-tax Act, 1961. The appellant was called upon to explain the reasons for the cash payment, which was disallowed by the Assessing Officer under section 40A(3) of the Act. The appellant's explanation that the money was paid towards stitching charges was not accepted. The Assessing Officer also disallowed 30% of the office expenses of Rs.1,03,574/-. An appeal was filed before the Addl/JCIT(A)/NFAC, which was dismissed in limine for non-prosecution. The appellant then filed an appeal before the Tribunal.…

Legal Issues

• 1. Whether the Addl/JCIT(A)/NFAC dismissed the appeal in limine without discussing the merits of the additions made by the Assessing Officer.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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