DCIT Circle-7(1) Delhi vs Dev Rubber Factory Pvt. Ltd.

Parties Involved

Facts Summary

The assessee company, Dev Rubber Factory Pvt. Ltd., was engaged in the business of manufacturing tubes for automobile tyres. It e-filed its return of income on 28.10.2017 declaring income at INR 77,50,730/-. The case was selected for scrutiny assessment through CASS and a notice u/s 143(2) was issued on 10.08.2018. Various statutory notices u/s 142(1) along with questionnaires were issued, and the assessee submitted its replies. The assessment order was passed at an income of INR 3,95,31,243/- o…

Legal Issues

• 1. Whether the Ld. NFAC has erred in allowing the appeal of the assessee by deleting the addition made by the AO amounting to Rs. 53,50,000/- on account of bogus share application money as per provisions u/s 68 of the IT Act, 1961?
• 2. Whether the Ld. NFAC has erred in allowing the appeal of the assessee by deleting the addition made by the AO amounting to Rs. 59,25,588/- on account of disallowance made against freight and forwarding expenses?

Precedents Relied Upon

Judgment Outcome