Income Tax Officer-1 vs. Varda Energy and Engineering Pvt. Ltd.

Parties Involved

Facts Summary

The assessee, Varda Energy and Engineering Pvt. Ltd., is a private limited company engaged in the trading of iron and steels. The company filed its original return of income declaring a total income of Rs.63,290/-. The Income Tax Officer (ITO) initiated proceedings under section 147 of the Act and passed an order under section 148A(d) of the Act. The ITO made additions of Rs.3,91,35,000/- on account of bogus purchases, Rs.20,00,000/- on account of cash credit, and Rs.14,15,237/- on account of agricultural income. The Commissioner of Income Tax (Appeals) deleted all the additions. The revenue appealed against the order of the Commissioner of Income Tax (Appeals).…

Legal Issues

• 1. Deletion of addition of Rs.3,91,35,000/- made by the AO as unexplained credit on account of bogus purchases.
• 2. Deletion of addition of Rs.20,00,000/- made by the AO on account of cash credit.
• 3. Deletion of addition of Rs.14,15,237/- made by the AO as unexplained credit under section 68 of the Act.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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