Assistant Commissioner of Income Tax, Circle 10(1), New Delhi Vs. The Index Securities & Research Pvt. Ltd.

Parties Involved

Facts Summary

The assessee company, The Index Securities & Research Pvt. Ltd., filed its return of income for AY 2016-17 declaring a business loss. The case was selected for scrutiny, and notices were issued under Sections 143(2) and 142(1) of the Income Tax Act, 1961. During the inquiry, it was found that the assessee company was involved in providing accommodation entries. The Assessing Officer (AO) made additions to the assessee's income, which were partly allowed by the Commissioner of Income Tax (Appeals) (CIT(A)). The Department of Revenue appealed against the CIT(A)'s order, arguing that the CIT(A) erred in deleting certain additions made by the AO.…

Legal Issues

• 1. Whether the CIT(A) erred in deleting the addition made by the AO as commission income at 2%.
• 2. Whether the CIT(A) erred in deleting the addition of Rs. 2,75,00,000/- made by the AO on account of disallowance of bad debts written off.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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