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DCIT, Central Circle-4(2), Kolkata Vs. Alom Poly Extrusions Ltd.

Case No: I.T.A. Nos. 1007 & 1425/Kol/2024
Court: Income Tax Appellate Tribunal 'A' Bench, Kolkata
Date: 3/25/2025

Parties Involved

appellantDCIT, Central Circle-4(2), Kolkata
respondentAlom Poly Extrusions Ltd.

Facts Summary

The assessee, Alom Poly Extrusions Limited, filed its return of income on 12.10.2016 claiming deduction under Chapter VIA of the Act, 1961, declaring total income at Rs. Nil. A search and seizure operation under section 132 of the Act was conducted on 26.11.2015 and subsequent dates against the key person of the Jhunjhunwala group of cases. During the search, cash, jewelry, and books of accounts were seized. Notices under section 142(1) along with questionnaires were served upon the assessee, and notices under section 133(6) were issued to all loan creditors. The Assessing Officer (AO) passed an assessment order under section 143(3) determining the total income of Rs. 2,58,76,400/-, making additions for unexplained cash credit under section 68 of the Act and disallowance of interest expenses. Aggrieved by this order, the assessee appealed, and the Commissioner of Income Tax (Appeals) (CIT(A)) partly allowed the appeal. The revenue then appealed to the Tribunal.

Decision in favour of

Assessee

Legal Issues

  • 1. Whether the addition made under section 68 of the Act for unexplained cash credit was justified.
  • 2. Whether the disallowance of interest expenses was correct.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

6 precedents cited in this judgement.

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