ITA No.3055/Del/2025 Omax Autos Ltd.(AY: 2020-21)

Parties Involved

Facts Summary

The assessee, Omax Autos Ltd., is a company engaged in manufacturing auto and non-auto components. For the assessment year 2020-21, the company filed its return of income declaring an income of Rs. 26,89,05,610/-. The return was selected for complete scrutiny, resulting in an assessment order dated 23.09.2022, which assessed the total income at Rs. 1,25,74,38,095/-. Aggrieved by this order, the assessee filed an appeal before the CIT(A), which was partly allowed. The revenue then filed this appeal raising several grounds of disallowance and addition of income.…

Legal Issues

• 1. Disallowance on account of unverified deduction amounting to Rs. 58,16,56,473/-
• 2. Disallowances on account of unexplained and unverified expenses on account of Trade advances written off amounting to Rs. 13,47,90,887/-
• 3. Disallowances on account of unexplained and unverified expenses on account of bad debts written off amounting to Rs. 2,25,98,900/-
• 4. Disallowances on account of unexplained and unverified expenses on account of inventory written off amounting to Rs. 4,25,00,000/-
• 5. Disallowance of Long Term Capital gain on sale of land amounting to Rs. 2,85,78,348/-
• 6. Disallowances on account of unexplained and unverified expenses on account of other borrowings costs amounting to Rs. 86,90,000/-

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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