Dozco (India) Pvt. Ltd. vs. DCIT, Circle 1(1)

Parties Involved

Facts Summary

The assessee, Dozco (India) Pvt. Ltd., filed a return of income on 21.01.2021, declaring total income at ₹8,82,95,060/-. The return was processed on 06.08.2021. The Assessing Officer assessed the income at ₹35,03,07,107/- by making three disallowances: (i) disallowances of PF and ESI of ₹1,39,20,904/-, (ii) contingent liability of ₹23,29,89,737/-, and (iii) disallowances under section 43B of ₹1,51,00,801/-. The assessee moved a rectification application, deleting the disallowance under section 43B but retaining the other two additions. The Commissioner of Income Tax (Appeals) restored the issue to the file of the Assessing Officer. The assessee appealed against the order of the Commissioner of Income Tax (Appeals).…

Legal Issues

• 1. Whether the disallowance of PF and ESI by the Assessing Officer is sustainable?
• 2. Whether the addition of contingent liability by the Assessing Officer is sustainable?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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