Ginni Filaments Ltd. Vs. DCIT, Circle 1(1)(1), Agra

Parties Involved

Facts Summary

The assessee, Ginni Filaments Ltd., is in the business of manufacturing knitted fabric, yarns, and readymade garments. The assessee filed its return of income for the assessment year 2020-21, declaring a total income of Rs. 14,14,57,480/-. The assessee's case was selected for scrutiny due to discrepancies in the sale consideration of properties and high liabilities compared to low income/receipts. The main issue under dispute was the outstanding trade payable liability of Rs. 34,45,60,149/- in respect of 119 parties out of 257 sundry creditors. The assessee did not submit confirmations, sample bills, or bank extracts pertaining to the impugned amount. The Assessing Officer disallowed the liability and added Rs. 34,45,60,149/- in the income of the assessee under section 41(1) of the Income-tax Act, 1961.…

Legal Issues

• 1. Whether the CIT(A) erred in endorsing the assessment order without affording proper opportunity of hearing to the assessee.
• 2. Whether the CIT(A) erred in confirming the addition of Rs. 34,45,60,149/- under section 41(1) of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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