Ishan Equipments Pvt.Ltd. vs. The DCIT

Parties Involved

Facts Summary

The assessee, Ishan Equipments Pvt.Ltd., is engaged in the business of engineering and fabrication. The assessee filed its return of income for the Assessment Year 2018-19 on 25.10.2018, declaring a total income of Rs.1,51,43,170/-. The case was selected for complete scrutiny under the E-Assessment Scheme, 2019, with identified issues, such as, Verification of genuineness of expenses, and Verification of duty drawback received. The assessment order was passed by the Assessing Officer (AO) on 19.04.2021, making some additions, including: Disallowance of penalty expenditure amounting to Rs.4,81,985/- under section 37 and Disallowance of bad debts of Rs.24,50,304/- under section 36(1)(vii). Aggrieved by the additions, the assessee preferred an appeal before the CIT(A), who partially allowed the appeal. Dissatisfied with the remaining additions, the assessee has filed this appeal before the ITAT.…

Legal Issues

• 1. Disallowance of Penalty Expenditure of Rs.4,81,985/-
• 2. Disallowance of Bad Debts W/Off Rs.24,50,304/-

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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