MOTOR MITRA PARTNER,JABALPUR V. INCOME TAX OFFICER WARD 1(2), JABALPUR

ITA 30/JAB/2025

AI Insights

The case involves Kantilal Gugalia, a partner at Motor Mitra, who appealed against the disallowance of Rs.25,000 from vehicle expenses claimed in the assessment year 2014-15. The disallowance was initially made by the Assessing Officer under section 143(3) of the Income Tax Act, 1961, and was upheld by the Commissioner of Income Tax (Appeals) in Panaji. The primary contention in the appeal before the Income Tax Appellate Tribunal was the arbitrary nature of the disallowance, which lacked any substantive justification or basis for its quantification. The Tribunal, after reviewing the materials on record and hearing the Departmental Representative, decided in favor of the assessee, leading to the deletion of the disallowance.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 847593 (ITAT-JABALPUR)
• Duration Of Justice: 1 year(s) 1 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-03-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Jabalpur
• Assessment Year: 2014-2015
• Appeal Filed On: 24-01-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAHUL PADIA; .
• Section: 143(3)

Judgement Text

" 1 IN THE INCOME TAX APPELLATE TRIBUNAL JABALPUR BENCH, JABALPUR [Virtual Hearing] BEFORE SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER I.T.A. No.30/Jab/2025 Assessment year:2014-15 Kantilal Gugalia (partner), Motor Mitra, 117, NapierTown, Jabalpur, Madhya Pradesh 482 002 PAN: AAHFM 2802K Vs. Income Tax Officer, Ward 1(2), Aaykar Bhawan, Napier Town, Jabalpur - 482001 (Appellant) (Respondent) O R D E R This appeal vide I.T.A. No.30/Jab/2025 has been filed by the assessee for assessment year 2014-15 against impugned appellate order dated 19/12/2024 (DIN & Order No.ITBA/APLS/S/250/2024-25/1071361437(1) of Commissioner of Income Tax (Appeal) [CIT(A)], Panaji. (B) The facts of the case, in brief, are that the assessee e-filed its return of income on 27/09/2014, declaring loss of Rs.1,22,625/-. The Assessing Officer completed the assessment and passed assessment order under section 143(3) of the I.T. Act on 22/08/2016 and wherein disallowance of Rs.25,000/- was made out of vehicle expenses claimed by the assessee. Being aggrieved, the assessee carried the matter in appeal. Vide impugned Appellant by None Respondent by Shri Rahul Padia, Sr. D.R.-1 Date of hearing 10.02.2026 Date of pronouncement 23.03.2026 Printed from counselvise.com 2 appellate order dated 19/12/2024, the learned First Appellate Authority has dismissed the appeal of the assessee. Now the assessee is in appeal before the Income Tax Appellate Tribunal. The only issue in dispute in the present appeal pertaining to aforesaid disallowance of Rs.25,000/- out of vehicle expenses. (C) During the course of hearing none was present on behalf of assessee. In the absence of any representation from the side of the assessee, learned Departmental Representative was heard. Materials on record have been perused. The Assessing Officer has made lumpsum disallowance of Rs.25,000/- out of vehicle expenses in an adhoc manner without any supporting material to justify the disallowance. The Assessing Officer has also not provided any basis for quantification of disallowance. The disallowance is whimsical, arbitrary, and without merit. (D) In view of foregoing, the aforesaid disallowance of Rs.25,000/- out of vehicle expenses is hereby deleted. (E) In the result, the appeal of the assessee stands allowed for statistical purposes. (Order pronounced in the open court on 23.03.2026) Sd/- (ANADEE NATH MISSHRA) Accountant Member Dated 23.03.2026 Aks/- Printed from counselvise.com 3 Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. D.R., I.T.A.T., Printed from counselvise.com "