Aries Designers Pvt. Ltd. Vs. ITO, Ward-1(1), Kolkata

Parties Involved

Facts Summary

The assessee, Aries Designers Pvt. Ltd., is engaged in the business of trading in gray fabrics and investment in real estate projects. For the assessment year 2017-18, the company filed its return of income declaring a total income of Rs. 1,78,150/-. The case was selected for scrutiny, and notices under sections 143(2) and 142(1) were issued. In response, the assessee company filed relevant documents. The Assessing Officer (AO) held that there was a significant variance in the gross profit percentage and added Rs. 1,01,80,075/- to the total income. Additionally, the AO added Rs. 39,67,22,381/- as an unsecured loan received in the previous year. Aggrieved by this order, the assessee appealed to the Commissioner of Income Tax (Appeals)- NFAC, Delhi, which was dismissed. Subsequently, the assessee filed an appeal before the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Addition of Rs. 1,01,80,075/- by the AO for variance in gross profit percentage.
• 2. Addition of Rs. 39,67,22,381/- as unexplained cash credit.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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