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Bhagwan Instalments Ltd. Vs Income Tax Officer

Case No: ITA Nos.2647 & 2648/Del/2024
Court: Income Tax Appellate Tribunal, Delhi Bench ‘A’, New Delhi
Date: 3/24/2025

Parties Involved

appellantBhagwan Instalments Ltd.
respondentIncome Tax Officer, Ward-2(3), Badayun-1, Uttar Pradesh-243601

Facts Summary

The assessee, Bhagwan Instalments Ltd., is a company engaged in hire purchase financing business. It filed its return of income for the Assessment Year 2018-19 on 30.09.2018 declaring total income of Rs. NIL. The Assessing Officer issued notices under sections 143(2) and 142(1) of the Act. The assessee furnished audited financial statements, ITR acknowledgment, and computation of income. The case was selected for limited scrutiny, and the Assessing Officer disallowed a claim of Rs. 2,27,35,989/-

Decision in favour of

Assessee

Legal Issues

  • 1. Whether the CIT(A) erred in not quashing the assessment order passed by the AO.
  • 2. Whether the disallowance of the claim of bad debts by the AO was justified.

2 more legal issues analysed in this judgement.

Precedents Relied Upon

Judgment Outcome

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