ACIT Circle-10(1) Vs M/s Hero Ecotech Limited

Parties Involved

Facts Summary

The assessee filed a return for A.Y. 2017-18 on 30.10.2017, declaring an income of Rs. 25,74,08,100/-. Subsequently, a revised return was filed on 15.12.2018, declaring an income of Rs. 25,94,86,405/-. The case was selected for scrutiny, and during the proceedings, the Assessing Officer (AO) noted that the assessee had paid Rs. 1,82,21,201/- as payment for professional and technical services during the year. Notices under Section 133(6) were issued to 13 parties, but none responded. The AO held that the assessee had booked bogus expenditure and disallowed the amount, adding it under Section 69C read with Section 115BBE of the Act. The assessment was completed at a total income of Rs. 27,77,07,606/- vide order under Section 143(3) dated 06.12.2019. Aggrieved, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals) (CIT(A)), who allowed relief to the assessee, observing that the assessee had submitted bills, vouchers, confirmation letters, and bank statements of the parties who rendered professional and technical services and received payments. The CIT(A) allowed the assessee’s appeal vide order dated 22.07.2025. Aggrieved, the revenue has preferred an appeal before the Tribunal.…

Legal Issues

• 1. Whether the Ld. CIT(A) erred in deleting the addition of Rs. 21,82,21,201/- made under Section 69C read with Section 115BBE of the Income-tax Act.
• 2. Whether the Ld. CIT(A) erred in deleting the addition made by the AO without appreciating the assessee's failure to prove the genuineness of the professional and technical payments.
• 3. Whether the Ld. CIT(A) erred in not exercising powers under Section 250(4) of the Act to direct the AO to conduct further inquiries.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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