H R Infracon Limited Vs. DCIT, Circle-7(1), Kolkata

Parties Involved

Facts Summary

The assessee, H R Infracon Limited, filed a return of income for AY 2022-23 declaring a loss of ₹2,56,182/-. The case was selected for scrutiny due to high liabilities compared to low income/receipts and large turnover with unaudited books of account. The Assessing Officer issued several notices to the assessee, but there was no compliance. Consequently, a sum of ₹1,00,00,000/- was disallowed from purchases and other direct expenses, and the total income was assessed at ₹1,00,00,000/-. Aggrieved by this, the assessee filed an appeal before the Commissioner of Income Tax (Appeals)-NFAC, Delhi, who upheld the disallowance. The assessee then filed an appeal before the Tribunal, arguing violation of natural justice due to notices being sent to an incorrect email address and failure to issue physical notices.…

Legal Issues

• 1. Violation of principles of natural justice and failure to afford adequate opportunity of being heard.
• 2. Lumpsum disallowance of Rs. 1,00,00,000/- under Section 68 read with Section 115BBE.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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