Ammayapper Textiles Pvt. Ltd. vs. The Principal Commissioner of Income Tax

Parties Involved

Facts Summary

The assessee, Ammayapper Textiles Pvt. Ltd., filed its return of income for the Assessment Year 2014-15 declaring a total income of Rs. 81,82,209/-. The assessment was completed under section 143(3) of the Income-tax Act, 1961, determining the total income at Rs. 1,37,51,541/- by disallowing employees' contribution of PF & ESI under section 36(1)(va) of Rs. 55,69,332/-. The assessee filed an appeal against the disallowance, which was allowed by the Commissioner of Income Tax (Appeals). Subsequently, the case was reopened under section 148 of the Act, and an order was passed under section 147 of the Act, making an addition of Rs. 78 Lakhs as land development cost treated as capital expenditure. The Principal Commissioner of Income Tax found the order erroneous and prejudicial to the interest of Revenue as it did not make the disallowance of employees' contribution of PF & ESI under section 36(1)(va) of the Act.…

Legal Issues

• 1. Whether the order passed by the Assessing Officer is erroneous and prejudicial to the interest of Revenue?

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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