VAIBHAV TRADING COMPANY,UTTAR PRADESH V. ITO, WARD-2(2)(5), GHAZIABAD

ITA 5926/DEL/2025

AI Insights

The case involves M/s. Vaibhav Trading Company appealing against the disallowance of their salary and sales promotion expenses by the Income Tax Officer, Ward-2(2)(5), Ghaziabad, which was upheld by the Commissioner of Income Tax (Appeals)/Addl./JCIT(A)- 1, Nashik. The disallowances were initially set at 50% and 70% respectively. The Tribunal acknowledged the regular business activities of the assessee and the principle of allowability of the expenses but noted the lack of sufficient supportive evidence provided by the assessee to substantiate the claims. After considering the arguments from both sides, the Tribunal decided to impose a 5% lump sum disallowance on the contested expenses.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 782725 (ITAT-DELHI)
• Duration Of Justice: 1 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-10-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 23-09-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MANOJ KUMAR
• Assessee Lawyers: SAHIL SHARMA
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: “SMC” NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER ITA No.5926/Del/2025 Assessment Year: 2017-18 M/s. Vaibhav Trading Company, 285, Chakki Wali Gali, Railway Road, Ghaziabad Vs. Income Tax Officer, Ward-2(2)(5), Ghaziabad PAN: AAEFV6176E (Appellant) (Respondent) ORDER This assessee’s appeal for assessment year 2017-18, arises against the Commissioner of Income Tax (Appeals)/Addl./JCIT(A)- 1, Nashik’s DIN and order no. ITBA/APL/S/250/2025- 26/1078982530(1), dated 28.07.2025 involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Heard both the parties. Case file perused. Assessee by Sh. Sahil Sharma, Adv. Sh. Sanjay Parashar, Adv. Department by Sh. Manoj Kumar, Sr. DR Date of hearing 29.10.2025 Date of pronouncement 29.10.2025 Printed from counselvise.com ITA No.5926/Del/2025 2 | P a g e 2. It transpires during the course of hearing that the assessee/appellant herein is aggrieved against both the learned lower authorities’ respective findings inter alia disallowing its salary and sales promotion expenses on ad-hoc basis @ 50% and 70%; involving varying sums, respectively, in assessment order dated 23rd December, 2019 as upheld in the lower appellate discussion. 3. The tribunal has given due consideration to both the parties’ respective vehement rival submissions against and in support of the impugned twin disallowances. It is made clear that there is no dispute about the assessee’s regular business activity as well as allowability of both these expenditure claims in principle. The fact also remains that the assessee has not successfully pleaded and proved the impugned twin claims of expenditure by filing all the necessary supportive evidence(s) to the entire satisfaction of the learned lower authorities. Be that as it may, it thus deemed appropriate in these peculiar facts that a 5% lumpsum disallowance of both these impugned expenditure claims would be just and proper with a rider that the same shall not be treated as a precedent. Necessary computation shall follow. Printed from counselvise.com ITA No.5926/Del/2025 3 | P a g e 4. This assessee’s appeal is partly allowed. Order pronounced in the open court on 29th October, 2025 Sd/- (SATBEER SINGH GODARA) JUDICIAL MEMBER Dated: 29th October, 2025. RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi Printed from counselvise.com "