{"id":56538,"date":"2025-09-15T11:53:17","date_gmt":"2025-09-15T06:23:17","guid":{"rendered":"https:\/\/itatonline.org\/digest\/kedaara-capital-fund-ii-llp-v-nfac-bomhc-www-itatonline-org\/"},"modified":"2025-09-15T11:53:17","modified_gmt":"2025-09-15T06:23:17","slug":"kedaara-capital-fund-ii-llp-v-nfac-bomhc-www-itatonline-org","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/kedaara-capital-fund-ii-llp-v-nfac-bomhc-www-itatonline-org\/","title":{"rendered":"Kedaara Capital Fund II LLP v. NFAC (Bom)(HC) www.itatonline .org"},"content":{"rendered":"<p>The assessee, a SEBI registered Category II AIF with pass-through status u\/s 115UB, filed NIL return for A.Y. 2022\u201323. It had incurred expenses of \u20b9118.99 Cr but claimed no deduction of the same, nor were they claimed by unit holders. The only income earned was short-term capital gains of \u20b90.99 Cr, claimed exempt u\/s 10(23FBA). The AO disallowed \u20b9103.15 Cr (excluding management fee of \u20b915.84 Cr allowed) holding expenses to be non-genuine and added the same under \u201cbusiness income,\u201d issuing demand and penalty notice u\/s 274.The High Court held that: , \u00a0though alternative remedy before CIT(A) was available, writ jurisdiction is maintainable where the order is wholly without jurisdiction , the AO erred in relying on accounting treatment to disallow expenses never claimed as deduction, \u00a0as settled by Supreme Court in Kedarnath Jute Mfg. Co. Ltd. v. CIT (1971) \u00a082 ITR 363( SC) , Taparia Tools Ltd. v. JCIT (2015) 372 ITR 605 \/ \u00a055 taxmann.com 361( SC) \u00a0and United Commercial Bank v. CIT (1999) 240 ITR 355( SC) \u00a0book entries are not conclusive for taxability; \u00a0since no deduction was claimed, there was no basis to add back such expenses. Accordingly, the impugned assessment order, demand notice and penalty notice were quashed.<strong> (<\/strong>WP No. 2684 of 2025, dt. 9-9-2025 (AY .2022\u201323)<\/p>\n<p>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p> S. 143(3) Assessment \u2013 Disallowance of expenditure \u2013 Business income &#8211; Entries in the books of account is not conclusive- Alternative remedy \u2013 No deduction of expenses claimed either by assessee or unit holders \u2013 Addition made by AO wholly without jurisdiction \u2013 Writ petition maintainable \u2013 Assessment order quashed. [S. 10(23FBA), 28(i), 37(1), 115UB,  144B , 246A  , Art. 226]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-56538","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-eHU","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/56538","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=56538"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/56538\/revisions"}],"predecessor-version":[{"id":56539,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/56538\/revisions\/56539"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=56538"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=56538"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=56538"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}