DCIT, Circle- 11(1), Kolkata vs. Welkin Telecom Infra Pvt. Ltd.

Parties Involved

Facts Summary

The assessee, Welkin Telecom Infra Pvt. Ltd., is a private limited company engaged in providing support services to telecom operators. The case pertains to the assessment year 2013-14. The assessee filed its return of income declaring income of Rs.4,98,34,160/-. The case was selected for scrutiny, and a special audit was conducted under section 142(2A) of the Income Tax Act, 1961. The Assessing Officer (AO) made various additions amounting to Rs.6,33,40,903/-. The assessee appealed to the Commissioner of Income Tax (Appeals) (CIT(A)), who deleted the additions. The revenue appealed to the Income Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Deletion of addition for negative cash balance of Rs.1,22,38,787/- made by AO u/s. 69C of the Act.
• 2. Deletion of disallowance of caretaker service of Rs.1,48,13,420/- u/s. 69C of the Act.
• 3. Deletion of disallowance of cash expenses of Rs.82,38,127/- incurred towards maintenance and services.
• 4. Deletion of disallowance of site expenses of Rs.1,06,12,994/- made by the Ld. AO invoking section 69C of the Act.
• 5. Deletion of disallowance of expenses on account of loss on fuel Vodafone of Rs.27,18,476/-.
• 6. Deletion of disallowance of night patrolling charges of Rs.34,63,042/-.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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