Chiranjilal Tea Company Pvt. Ltd vs. DCIT, Circle-1(1), Jalpaiguri

Parties Involved

Facts Summary

The assessee, Chiranjilal Tea Company Pvt. Ltd, is a resident company deriving income from the manufacture and sale of tea. For the assessment year 2015-16, the company declared a loss of Rs. 2,35,697/- in its return of income. The return was selected for scrutiny due to a large increase in sundry creditors and a reduction in business income compared to the preceding year, as well as a significant difference between the opening and closing written down value (WDV) of assets. The Assessing Officer issued notices seeking details such as the list of sundry creditors and depreciation charts. Despite the appellant furnishing details like audited accounts and bank statements, there was a considerable delay in submission. The Assessing Officer added Rs.72,97,419/- on account of suppression of asset value and income and Rs. 61,54,025/- on account of unverified creditors, assessing the total income at Rs. 88,39,915/-. The assessee appealed against this order, which was dismissed by the CIT(A). The assessee then appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the addition of Rs.72,97,419/- on account of discrepancies in depreciation was justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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• ITA No.1969/Chny/2025, Assessment Years: 2014-15 CO No.86/Chny/2025, Assessment Years: 2014-15