Baba Global Ltd. Vs DCIT

Parties Involved

Facts Summary

The case pertains to the assessment year 2018-19. Baba Global Ltd. appealed against the order of CIT(A)-30, New Delhi, which upheld an addition of Rs. 19,98,738/- as bogus interest expenditure under section 69C of the Income Tax Act, 1961. The assessee argued that the addition was erroneous as the lower appellate authority had already deleted a corresponding addition of unexplained cash credits. Additionally, the assessee contended that the source of the interest expenditure was not held as unexplained by the lower authorities.…

Legal Issues

• 1. Whether the CIT(A) erred in sustaining the addition of Rs. 19,98,738/- as bogus interest expenditure.
• 2. Whether section 115BBE should be applicable to the sustained addition.
• 3. Whether the amount of Rs. 19,98,738/- should be considered as bogus interest payment.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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