DCIT, Central Circle-4(1), Kolkata Vs. M/s. Impex Ferro Tech Ltd. and M/s. Impex Ferro Tech Ltd. Vs. ACIT, Central Circle-4(1), Kolkata

Parties Involved

Facts Summary

The assessee, M/s. Impex Ferro Tech Ltd., filed its return of income for the AY 2014-15 showing a loss of ₹70,33,25,418/-. A survey was conducted at the office premises of VNG Mercantile Ltd. The assessee is involved in the manufacture and sale of Ferro alloys. The case was selected for scrutiny by the Assessing Officer, who issued a notice u/s 143(2) of the Act. After considering the submissions and judicial pronouncements, the AO assessed the total income of the assessee at ₹103,28,74,701/- u/s 143(3)/144C/145(3) of the Act. Aggrieved by this, the assessee filed an appeal before the Ld. CIT(A), who partly allowed the appeal. Both the assessee and the revenue then filed appeals before the Tribunal. None appeared on behalf of the assessee during the hearing. It was submitted by the Ld. DR that the NCLT had passed an order initiating the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016, and a moratorium had been imposed.…

Legal Issues

• 1. Deletion of addition of Rs. 55,22,53,107/- by the Ld. CIT(A).
• 2. Deletion of addition of Rs. 2.25 crore on account of share capital and premium received.
• 3. Arm's length price adjustment of Rs. 16,10,00,000/- on account of purchase of high ash energy coal.
• 4. Upholding of addition of Rs.26 crores u/s. 68 of the Act on account of share application money received.
• 5. Downward adjustment of SDT of Rs. 16,10,00,000/- with three parties.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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