Ducat India Private Limited vs. ACIT, Circle 7(2), New Delhi

Parties Involved

Facts Summary

The assessee, Ducati India Private Limited, is in the wholesale distribution of premium motorcycles and related products. The assessee filed its return of income declaring a loss of Rs. 4,32,28,164/- on 30.11.2017, which was revised to declare income at nil after adjustment of brought forward losses. The case was selected for scrutiny, and a notice under section 143(2) of the Income Tax Act, 1961 was issued. The assessee was asked to submit details of creditors and balances outstanding, but no response was made, leading to an addition of Rs. 2,63,85,935/- as unexplained credits under section 68 of the Act. The assessee submitted a list of creditors and details of transactions during the appellate proceedings, arguing that the show cause notice was factually incorrect and that additional evidence was not considered by the CIT(A). The tribunal found the submissions acceptable and remitted the issue to the CIT(A) for reappraisal of evidence.…

Legal Issues

• 1. Whether the addition made by the ACIT is sustainable in law?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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