The Advertising Corporation of India Pvt. Ltd. vs. DCIT, Circle-4(2), Kolkata

Parties Involved

Facts Summary

The present appeal arises from the order of the Ld. Commissioner of Income Tax (Appeals), Addl./JCIT(A)-1, Delhi, passed under section 250 of the Income Tax Act, 1961. The Ld. AO made three additions: (a) Rs. 7,27,249/- by disallowing certain expenses claimed as business expenses, (b) Disallowance under section 40(a)(ia) of Rs. 44,630/-, and (c) Rs. 87,500/- disallowed on account of rent expenses. The Ld. CIT(A) confirmed these additions. Aggrieved by this, the assessee appealed to the ITAT. The assessee argued that the expenses were genuine and incurred for business purposes, while the department maintained that the expenses were not allowable under the Act.…

Legal Issues

• 1. Whether the disallowance of Rs. 8,27,249/- as business expenses is justified.
• 2. Whether the disallowance under section 40(a)(ia) of Rs. 44,630/- is justified.
• 3. Whether the disallowance of Rs. 87,500/- on account of rent expenses is justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Bureau Veritas Consumer Products Services (India) Pvt. Ltd.

  C BENCH, DELHI benchAY 2014-15Dismissed

• Navdeep Singh vs DCIT

  Delhi Bench ‘F’, New Delhi benchAY 2015-16Allowed

• P.N. Memorial Neuro Centre and Research Institute Ltd. vs. DCIT, Circle 11(1)

  D Bench, Kolkata benchAY 2016-17Allowed

• M/s. SOCOMEC India Pvt. Ltd vs. Dy. CIT, TDS Circle, Gurgaon

  Delhi Bench benchAY 2018-19Allowed

• ITA No.2386/Chny/2025

• Bikash Kumar Mondal

  Kolkata Bench benchAY 2010-2011Partly Allowed