Deputy Commissioner of Income Tax, Central Circle-1, ARTO Complex, 2nd Floor, Sector-33, Noida, Uttar Pradesh-201301 vs Elixir Buildcon Pvt. Ltd., Plot No. 15A, Elixir Business Park, Sector-127, Gautam Buddh Nagar, Noida, Uttar Pradesh-201301
Parties Involved
Facts Summary
During the year, the assessee, Elixir Buildcon Pvt. Ltd., carried out activity of running a guest house and restaurant under the name & style of M/s Hide away suites at Elixir business park, 15A, Sector-127, Noida. The Assessing Officer made two additions: (i) Addition of Rs. 47,50,000/- under section 68 of the Act in respect of unsecured loans received from M/s Cosmic Solution Pvt. Ltd.; and (ii) Addition of ₹3,42,47,147/- on account of disallowance of “finance costs”. The assessee had received an unsecured loan of Rs. 47,50,000/- from M/s Cosmic Solution Pvt. Ltd. and claimed finance costs of Rs. 3,42,47,147/- as assured return to Anand Kumar. The Assessing Officer disallowed these claims, which were subsequently deleted by the Commissioner of Income Tax (Appeals). The Revenue then filed an appeal against the order of the Commissioner of Income Tax (Appeals).…
Decision in favour of
Revenue
Legal Issues
- 1. Whether the addition of Rs. 47,50,000/- under section 68 of the Act in respect of unsecured loans received from M/s Cosmic Solution Pvt. Ltd. was correctly deleted by the Ld. CIT(A).
- 2. Whether the disallowance of Rs. 3,42,47,147/- on account of disallowance of “finance costs” was correctly deleted by the Ld. CIT(A).
Judgment Outcome
Decided in favour of Revenue.
Precedents Relied Upon
1 precedent cited in this judgement.
Similar Judgements
Devon Metals P. Ltd. Vs. Income Tax Officer, Ward 7(1)
Delhi Bench benchAY 2017-18AllowedM/s. Bhasin Motors Pvt. Ltd. vs. ACIT
Delhi Bench benchAY 2014-15Partly AllowedITA 3204 and 3206/Mum/2026 Kamla Ankur Venture and Kamla Shanti Developers Pvt Ltd. Assessment Year 2013-14
Mumbai benchFCS Computer Systems S PTE Ltd Vs. ACIT, International Taxation- 1(3)(1), Delhi
M/s. Ashapura Developers Vs. ACIT Circle-1, Thane
Mumbai benchAY 2014-15AllowedRajesh Mittal vs CIT(A)/NFAC
Delhi bench