IRC (INDIA) LIMITED Vs ACIT, Circle-1(1), Kolkata

Parties Involved

Facts Summary

This is an appeal filed by the assessee, IRC (INDIA) LIMITED, against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, dated 20.12.2023 passed under section 250 of the Income Tax Act, 1961 for Assessment Year 2016-17. The appeal pertains to two main issues: (1) the disallowance of Rs.14,75,38,642/- under section 40A(3) of the Act due to non-compliance with the prescribed format for providing details of cash payments made for truck hire charges, and (2) the addition of Rs.42,43,704/- under section 68 of the Act for unexplained cash credit, which the assessee claims was a loan from the directors and not advances from customers. The assessee argued that they provided details before the Ld. CIT(A) but in a different format, and requested the issues be restored to the Assessing Officer for reverification.…

Legal Issues

• 1. Disallowance of Rs.14,75,38,642/- under section 40A(3) for non-compliance with the prescribed format for providing details of cash payments for truck hire charges.
• 2. Addition of Rs.42,43,704/- under section 68 for unexplained cash credit, claimed by the assessee to be a loan from directors.

Judgment Outcome

Decided in favour of Assessee.

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