Bhartiya Samruddhi Investments and Consulting Services Limited vs. ACIT, Circle 4(2), New Delhi

Parties Involved

Facts Summary

The assessee, Bhartiya Samruddhi Investments and Consulting Services Limited, filed an appeal against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi dated 27.03.2023 relating to the assessment year 2012-13. The appeal was filed on the grounds that the reassessment was beyond the stipulated time limit of 4 years and was based on a mere change of opinion without any new material or failure on the part of the assessee to disclose fully and truly all material facts necessary for their assessment. The assessee had claimed an expenditure of Rs. 91,47,928/- on account of 'Sundry advances/assets written off' which was debited to the Profit and Loss account. The Assessing Officer added this amount back to the income of the assessee, which the assessee contested. The assessee argued that the expenditure was allowable as it was incurred in relation to the business and was not capital in nature. The Commissioner of Income Tax (Appeals)/NFAC confirmed the action of the Assessing Officer, leading to the appeal before the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the reassessment proceedings initiated by the Assessing Officer were valid?
• 2. Whether the addition of Rs. 91,47,928/- made by the Assessing Officer was justified?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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