C&C Construction Ltd vs. CIT(Appeals)-26 and ACIT

Parties Involved

Facts Summary

The case involves two appeals by C&C Construction Ltd against orders of the Commissioner of Income Tax (Appeals) and the Assessing Officer for the Assessment Year 2015-16. The assessee, engaged in infrastructure development and construction, had filed an income return declaring a loss. The Assessing Officer disallowed 10% of certain expenses and enhanced income based on reimbursement from an Oman branch. The Commissioner of Income Tax (Appeals) upheld the disallowance but partially allowed relief on a disallowance made under section 40(a)(ia) of the Income-tax Act, 1961. The assessee appealed against the disallowance and the enhancement of income.…

Legal Issues

• 1. Whether the disallowance of 10% of certain expenses was justified.
• 2. Whether the enhancement of income based on reimbursement from the Oman branch was justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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