Deputy Commissioner of Income Tax vs. Air Charter Services P. Ltd.

Parties Involved

Facts Summary

The case involves an appeal by the Revenue against the order of the Commissioner of Income Tax (Appeals)-29, Delhi, dated 22.08.2024, for the assessment year 2018-19. The Revenue challenged the deletion of disallowance of expenditure under section 37 of the Income Tax Act, 1961, amounting to Rs. 2,27,93,362/-. The assessee, Air Charter Services P. Ltd., had shown credit outstanding in the name of eight parties providing aircraft operation services, including catering, crew, and hospitality. The Assessing Officer (AO) had disallowed this expenditure, considering the creditors as bogus. However, the Commissioner of Income Tax (Appeals) deleted the disallowance, finding the creditors genuine based on their confirmations, tax receipts, and TDS deductions.…

Legal Issues

• 1. Whether the disallowance of expenditure under section 37 of the Income Tax Act, 1961, to the tune of Rs. 2,27,93,362/- was correctly deleted by the Commissioner of Income Tax (Appeals).

Judgment Outcome

Decided in favour of Assessee.

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