Elegant Textiles Pvt. Ltd. vs ITO

Parties Involved

Facts Summary

The assessee, Elegant Textiles Pvt. Ltd., filed its return of income through e-mode, declaring income at NIL. The case was selected for limited scrutiny. The Assessing Officer (AO) found that the assessee failed to provide the calculation of depreciation as per the Income Tax Act, 1961. Consequently, the AO disallowed the depreciation of INR 47,43,701/- and assessed the income of the assessee at INR 47,43,701/- under section 143(3). The assessee appealed to the Commissioner of Income Tax (Appeals) (CIT(A)), who dismissed the appeal. The assessee then appealed to the Income Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Whether the AO and CIT(A) grossly erred in assessing the total income at Rs.47,43,701/-.
• 2. Whether the disallowance of depreciation amounting to Rs. 47,43,701/- was justified.
• 3. Whether the order passed by the AO and upheld by CIT(A) is against the principles of natural justice, equity, and fair play.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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