ITA No.2705/Del/2015

Parties Involved

Facts Summary

The assessee, Skyline Engg. Contracts (India) P. Ltd., is a private limited company engaged in construction business. The return of income for the year under appeal (AY 2011-12) was filed on 30th September, 2011 declaring a total income of Rs.7,99,96,300/-. The assessment was completed u/s 143(3) of the Income Tax Act, 1961 on 31st March, 2014 at a total income of Rs.84,51,75,840/- by making various additions/disallowances. The assessee appealed before the Ld. CIT(Appeals)-8, New Delhi, who allowed substantial relief to the assessee vide order dated 27th February, 2015. The Revenue is now in appeal before the Income Tax Appellate Tribunal on various grounds.…

Legal Issues

• 1. Disallowance of Rs.2,86,715/- u/s 14A of the I.T. Act on account of dividend income.
• 2. Disallowance of depreciation on temporary structures amounting to Rs.10,60,114/-.
• 3. Disallowance of Rs.6,90,000/- on account of excess remuneration paid to a Director.
• 4. Disallowance of Rs.15,56,674/- being 2% of the amount spent on shuttering material as scrap value.
• 5. Addition of Rs.3,00,000/- on account of notional interest on the amount advanced to its sister concern.
• 6. Disallowance of sub-contract charges paid to M/s Bridge & Building Construction Co. Pvt. Ltd. and M/s Ridhi & Sidhi Infra Properties & Realtors Pvt. Ltd.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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