Galax Mineral Pvt. Ltd. Vs. DCIT

Parties Involved

Facts Summary

The assessee, Galax Mineral Pvt. Ltd., is a private limited company engaged in infrastructure development. The return of income was e-filed on 23.09.2015 declaring a loss of Rs. 3,92,92,800/-. The assessment was taken up for limited scrutiny by way of issue of notice u/s 143(2) of the Income Tax Act, 1961. The assessment was completed on 30.12.2017 with a total income of Rs. 2,03,48,692/- by making additions of Rs. 49,28,702/- u/s 14A and disallowing the short term loss of Rs. 5,46,97,033/- incurred on share warrants. In the first appeal, the ld. CIT(A) dismissed the appeal of the assessee. Aggrieved by this order, the assessee filed an appeal before the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Disallowance of short term capital loss of Rs.5,46,97,033 on account of forfeiture of share warrant.
• 2. Disallowance u/s 14A read with rule 8D amounting to Rs. 49,44,460/-.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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