Question 1

What are the key legal issues in A.P.I Civilcon Private Limited v/s ACIT CC- 5(2) & DCIT?

Accepted Answer

1. Whether the Hon'ble CIT(A) erred in partially upholding the addition to the tune of Rs. 6,59,404/- being 12.5% of the total purchases made from various parties as unexplained or bogus purchases. 2. Whether the Hon'ble CIT(A) erred in charging interest u/s. 234A/234B/234C/234D of the IT Act.

Question 2

What are the facts of A.P.I Civilcon Private Limited v/s ACIT CC- 5(2) & DCIT?

Accepted Answer

The assessee, A.P.I Civilcon Private Limited, is in the business of constructing roads and buildings and also undertakes BMC and Government Contract. For the assessment year 2020-21, the assessee filed its return of income declaring a total income of ₹ 12,50,02,540. During the search and post-search investigation, it was found that the assessee has claimed purchase expenses amounting to ₹ 52,75,234. The Department found that certain entities were bogus and the claim of purchases was infructuous, with an intention to inflate expenses and maximize taxable income. The assessee failed to produce necessary documents to substantiate the genuineness of the claimed purchases, leading the Assessing Officer to treat the purchase expenses as bogus transactions.

A.P.I Civilcon Private Limited v/s ACIT CC- 5(2) & DCIT

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Facts Summary

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