Gandhar Oil Refinery (India) Ltd. vs. ACIT, CC-5(1), Mumbai

Parties Involved

Facts Summary

The assessee company, engaged in business, filed its income return for the assessment year 2016-17 on 29.11.2016, disclosing a total income of Rs.12,27,87,970/-. The return was processed under section 143(1) of the Act. The case was selected for complete scrutiny under CASS, and notices were issued under sections 143(2) and 142(1) of the Act. The Assessing Officer (AO) referred the matter to the Transfer Pricing Officer (TPO) for determining the arm's length price (ALP). The AO disallowed deductions claimed under section 35(2AB) of the Act, amounting to Rs.19,21,303/-, as the R&D expenses were not approved by the DSIR. Additionally, the AO disallowed Rs.17,278/- for delay in payment of employees' contribution to ESI and Rs.4,88,070/- for advances written off without clarity on the facts. The AO assessed the total income at Rs.12,52,14,621/- and passed the order under section 143(3) of the Act on 24.12.2019.…

Legal Issues

• 1. Disallowance of deduction claimed under section 35(2AB) of the Act amounting to Rs.19,21,303/-.
• 2. Disallowance of deduction amounting to Rs.17,278/- on account of delay in payment of contribution to ESI.
• 3. Disallowance of claim of advances written-off amounting to Rs.4,88,070/-.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

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