VIDYA ONLINE PRIVATE LIMITED,PUNE V. DCIT CIR 7, PUNE

ITA 2599/PUN/2025

AI Insights

The case involves Vidya Online Pvt. Ltd., which appealed against the order of the CIT(A) sustaining the disallowance of professional fees amounting to 17,59,627 for the Assessment Year 2007-08. The primary contention was the adhoc disallowance made by the Assessing Officer, which was later upheld by the CIT(A). The assessee argued that all necessary details and evidence regarding the professional charges had been duly submitted, including TDS details. The Tribunal, after reviewing the extensive documentation provided by the assessee, concluded that the professional charges were genuine and properly substantiated, leading to the reversal of the CIT(A)'s decision.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 841941 (ITAT-PUNE)
• Duration Of Justice: 3 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 07-11-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRAMOD SHAHAKAR
• Assessee Lawyers: D.S.RAHURKAR
• Keywords: TDS
• Section: 143(3); 142(1)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PUNE “B” BENCH : PUNE BEFORE DR. MANISH BORAD, ACCOUNTANT MEMBER & Ms. ASTHA CHANDRA, JUDICIAL MEMBER I.T.A.No.2599/PUN/2025 (Assessment Year 2007-2008) Vidya Online Pvt. Ltd., 4 Electronic Co-operative Estate, Pune Satara Road, Pune-411 009 PAN : AABCV 4882 H vs. DCIT, Circle-7, Pune (Appellant) (Respondent) For Assessee : Shri D.S. Rahurkar, CA For Revenue : Shri Pramod Shahakar, JCIT Date of Hearing : 11.02.2026 Date of Pronouncement : 23.02.2026 ORDER PER : MANISH BORAD, AM This appeal at the instance of the assessee is directed against the order of Ld. ADDL/JCIT (Appeals), Bhubaneswar [“CIT(A)”] dated 10/09/2025 passed under section 250 of the Income Tax Act, 1961 (“Act”) which is arising out of assessment order dated 30.12.2009 passed u/s. 143(3) of the Act by the DCIT, Circle-7, Pune for the Assessment Year (AY) 2007-08. Printed from counselvise.com 2 ITA.No.2599/PUN./2025 (Vidya Online Pvt. Ltd.) 2. The sole grievance of the assessee is against the disallowance of professional fee at ₹ 17,59,627/-. 3. Facts of the case, in brief, are that the assessee is a private limited company, return of income for A.Y. 2007-08 e-filed on 15.11.2007 declaring NIL income. Case selected for scrutiny and valid notices u/s. 143(2) and 142(1) of the Act served upon the assessee. Various details called for by the Ld.Assessing Officer (AO) were furnished. Ld.AO was not totally satisfied with the details filed and he made various additions/disallowance totaling to ₹ 83,08,028/- and after giving set off of forward losses as well as current loss, total income assessed at ₹ NIL. 4. Aggrieved, assessee preferred appeal before the Ld.CIT(A) and partly succeed. Now the assessee is in appeal against the disallowance of professional fee of ₹ 17,59,627/- sustained by the Ld.CIT(A) for non-furnishing of relevant details and evidence. 5. Learned counsel for the assessee referred to the paper book running into 513 pages submitted that all the details of the professional charges along with the details of Tax Deducted at Source (TDS) thereon have been furnished before the Ld.AO as well as Ld.CIT(A). He also referred to the acknowledgment numbers for submissions made before the Ld.CIT(A) on multiple occasions. He also submitted that Ld.AO made an adhoc disallowance @50% of the total Printed from counselvise.com 3 ITA.No.2599/PUN./2025 (Vidya Online Pvt. Ltd.) professional expenses adopted by the assessee. He further drew our attention to the ledger account of the professional charges in paper book indicating that the assessee company is running various centres and professional charges of which centres are incurred and duly acknowledged for. He, therefore, prayed that the impugned disallowance may please be deleted. 6. On the other hand, Ld. Departmental Representative (DR) vehemently argued supporting the order of Ld. CIT(A). 7. We have heard rival contentions and perused the records placed before us. Assessee is aggrieved with the adhoc disallowance of professional fee at ₹ 17,59,627/-. We observe that assessee is a private limited company and books of accounts are regularly audited. Assessment in question pertains to A.Y. 2007-08. During the course of assessment proceedings the assessee has furnished complete details of professional charges along with details of tax deducted at sources, payment vouchers and TDS challans appearing in paper book at pg.Nos. 44-497. In spite of furnishing all these details Ld.AO without pointing out any discrepancy, has made adhoc disallowance @50%. Thereafter, assessee preferred appeal before the Ld.CIT(A) on 05.02.2010. The assessee has made detailed submissions on multiple occasions, however, it is surprising to note that it took almost 15 years for Ld.CIT(A) to pass the impugned order and in this long period, assessee Printed from counselvise.com 4 ITA.No.2599/PUN./2025 (Vidya Online Pvt. Ltd.) made multiple submissions whenever the notices were received and in spite of the fact that assessee furnished the details of professional charges paid along with the ledger accounts and payment vouchers again assessee was asked vide notice dated 03.06.2025 to furnish other evidences which pertains to A.Y. 2007-08 which is an almost 18 years old matter. 8. We have gone through the details furnished by the assessee which are exhaustive and each and every entry of professional charges debited in the profit & loss account have been placed in the paper book and all of them have been subjected to deduction of TDS and there remains no reason to doubt the genuineness of professional charges incurred and debited by the assessee during the year under consideration. We, therefore, are of the considered view that since genuine professional charges has been claimed by the assessee, Ld.AO grossly erred in making adhoc disallowance and further Ld.CIT(A) also erred in sustaining the adhoc disallowance in spite of the fact that all supporting documents for the alleged professional expenses incurred by the assessee have been placed before him. Accordingly, finding of Ld.CIT(A) is reversed and the impugned disallowance of professional fee at ₹ 17,59,627/- is deleted. Effective grounds of appeal raised by the assessee are allowed. Printed from counselvise.com 5 ITA.No.2599/PUN./2025 (Vidya Online Pvt. Ltd.) 9. In the result, appeal of the Assessee is allowed. Order pronounced in the open Court on 23.02.2026 Sd/- Sd/- [ASTHA CHANDRA] [MANISH BORAD] JUDICIAL MEMBER ACCOUNTANT MEMBER Pune, Dated 23rd February, 2026 vr/- Copy to 1. The appellant 2. The respondent 3. The Ld. PCIT concerned. 4. D.R. ITAT, “B” Bench, Pune. 5. Guard File. By Order //True Copy // Assistant Registrar, ITAT, Pune. Printed from counselvise.com "