Income Tax Appeal No. 1771/Chny/2024

Parties Involved

Facts Summary

The assessee, Parvathy Ayyavu, declared a total income of ₹.2,42,517/-. The Assessing Officer completed the assessment under section 143(3) of the Income Tax Act, 1961 and determined the total income of the assessee at ₹.2,87,040/-. The Assessing Officer found that the assessee had shown bogus liability against M/s. Legend and issued a notice under section 148 of the Act for reopening. The assessee did not provide any explanation for the bogus liability, non-refundable advance in cash to Mr. Dass alias Devamani and Mrs. Divya Mohanram, non-deduction of TDS, and bogus interest on account of advance. The Assessing Officer proceeded to complete the best judgment assessment under section 144 r.w.s. 147 of the Act. The assessee appealed to the Commissioner of Income Tax (Appeals), who gave relief to an extent of ₹.3,05,000/- regarding the addition made on account of non-refundable advance to two persons. The Revenue appealed to the Income-Tax Appellate Tribunal.…

Legal Issues

• 1. Delay in filing the appeal
• 2. Disallowance of bogus liability
• 3. Deletion of addition of ₹.4,92,73,580/-

Judgment Outcome

Decided in favour of Revenue.

Precedents Relied Upon

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