DR Engineers Private Limited v. AO

Parties Involved

Facts Summary

DR Engineers Private Limited, a construction company, filed an appeal against the Income Tax Department's assessment order for the Assessment Year 2018-19. The assessee claimed to have made purchases from two entities, Greendust Ventures Pvt. Ltd. and Libra Overseas, which were later found to be non-existent and involved in Input Tax Credit (ITC) fraud. The Income Tax Department alleged that the assessee made bogus purchases totaling Rs. 68,00,700, while the assessee claimed only Rs. 34,00,350 in their books. The assessee argued that the purchases were genuine and made through banking channels, but failed to provide credible evidence to support their claims. The Tribunal upheld the Department's findings and enhanced the addition to Rs. 68,00,700 as unexplained expenditure under Section 69C of the Income Tax Act, 1961.…

Legal Issues

• 1. Against Enhancement of Addition
• 2. Against Original Addition and Treatment u/s 69C
• 3. Against Disallowance when Sales are Accepted
• 4. Against Consequential Tax

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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