HOSDURG AJITH KUMAR KAMATH,PALLIKULAM, KANNUR V. DCIT CIRCLE-1, KANNUR

ITA 623/COCH/2024

AI Insights

The case involves Hosdurg Ajith Kumar Kamath, an individual engaged in the business of trading in marbles and granites, who appealed against the order of the Commissioner of Income Tax (Appeals)-3, Mumbai, for the Assessment Year 2009-10. The primary contention arose from various disallowances made by the Deputy Commissioner of Income Tax, Circle-1, Kannur, in the assessment order dated 14.11.2011. These disallowances included non-deduction of tax at source on freight charges, personal nature of car expenses, disallowed commission payments, and disallowed interest on a loan for property acquisition, among others. The CIT(A) partially relieved some of these disallowances but confirmed others, leading to the current appeal before the Income Tax Appellate Tribunal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 23427 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Keywords: Capital Gains; TDS
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM ITA No. 623/Coch/2024 Assessment Year: 2009-10 Hosdurg Ajith Kumar Kamath .......... Appellant Kamath Granites, Sasikala Trade Centre Chirakkal, Pallikulam, Kannur 670001 [PAN: AFIPK7922A] vs. Dy. Commissioner of Income Tax .......... Respondent Circle -1, Kannur Appellant by: ------- None ------- Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 05.02.2025 Date of Pronouncement: 11.02.2025 O R D E R This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-3, Mumbai [CIT(A)] dated 10.05.2024 for Assessment Year (AY) 2009-10. 2. Brief facts of the case are that the appellant is an individual engaged in the business of trading in marbles and granites.. The return of income for AY 2009-10 was filed on 30.11.2010 disclosing income of Rs. 23,18,220/-. Against the said return of income, the assessment was completed by the DCIT, Circle-1, Kannur (hereinafter called \"the AO\") vide order dated 14.11.2011 passed u/s. 143(3) of the Income Tax Act, 1961 (the Act) at a total income of Rs. 32,31,000/-. While doing so, the 2 ITA No. 623/Coch/2024 Hosdurg Ajith Kumar Kamath AO made disallowance of Rs. 1,38,710/- on the ground that the appellant had failed to deduct tax at source on freight charges of Rs. 6,07,972/-. The AO also disallowed 1/5 of the car expenses by holding to be personal in nature, amounting to Rs. 34,376/-. The AO disallowed commission payment of Rs. 1,36,746/-, commission paid on sale of property. He also disallowed interest paid on loan availed for the purpose of acquisition of property holding to be capital expenses. The AO also disallowed Rs. 2,00,000/- out of Rs. 3,50,000/- claimed as land development expenses while computing the capital gains. 3. Being aggrieved by the above disallowances an appeal was filed before the CIT(A), who vide impugned order deleted the addition on account of freight charges holding that the appellant was not liable to get the books of account audited, hence no TDS is required to be made. The CIT(A) also granted partial relief by allowing cost of land development to Rs. 1,00,000/- against Rs. 2,00,000/-. The balance additions were confirmed. 4. Being aggrieved, the appellant is in appeal before the Tribunal in the present appeal. 5. I have carefully gone through the orders passed by the lower authorities and find that before the CIT(A) the appellant filed a detailed submission which remained unaddressed by the CIT(A). The CIT(A), by passing a cryptic order, had merely confirmed the additions made by the AO. Therefore, the matter is remanded back to the file of the CIT(A) for de novo adjudication. 3 ITA No. 623/Coch/2024 Hosdurg Ajith Kumar Kamath 6. In the result, the appeal filed by the assessee stands allowed for statistical purposes. 7. Order pronounced in the open court on 11th February, 2025. Sd/- (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 11th February, 2025 n.p. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File Assistant Registrar ITAT, Cochin "