M/s. Sarga Hotel Private Limited Vs. I.T.O, Ward-8(2), Kolkata

Parties Involved

Facts Summary

The assessee, M/s. Sarga Hotel Private Limited, had filed its return of income for the AY 2013-14 declaring a total income of ₹17,88,720/-. The assessment was made under section 143(3) of the Act on 16.02.2016, determining the total income of ₹6,43,70,550/- after making disallowance of business expenditure of ₹37,359,866/- and the addition of ₹38,613,323/- under the head income from other sources. The assessee preferred an appeal before the Ld. CIT(A) who partly allowed the appeal. Aggrieved with the order of the Ld. CIT(A), the revenue has filed the appeal before the Tribunal. Additionally, the National Company Law Tribunal (NCLT) has passed an order under the Insolvency and Bankruptcy Code, 2016, initiating Corporate Insolvency Resolution Process (CIRP) for M/s. Sarga Hotel Private Limited, and a Resolution Plan has been approved.…

Legal Issues

• 1. Whether the Ld. CIT(A) erred in not considering disallowance made by the AO on account of business expenditure.
• 2. Whether the Ld. CIT(A) erred in providing relief to the assessee by allowing the capital expenditure charged to the profit and loss account.

Judgment Outcome

Decided in favour of Revenue.

Precedents Relied Upon

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