ITA No. 3815/MUM/2023

Parties Involved

Facts Summary

The assessee, M/s Netizen Engineering Private Limited, was engaged in the business of engineering procurement, construction, and creating infrastructure facilities in the field of telecommunication and other related services. The assessee filed its return of income on 06/09/2017 declaring total income at ₹1,79,04,860/-. The assessee was selected for scrutiny assessment and notice under section 143(2) of the Income-tax Act, 1961 was issued on 17/08/2018. The Assessing Officer disallowed interest expenses amounting to ₹496,57,84,051/- on the grounds that the interest income by Rs.17.40 cr. and interest payable on borrowings for business purpose were not conclusively established. The assessee appealed against the order of the Commissioner of Income-tax(Appeals)-National Faceless Appeal Centre, Delhi, which was set aside by the Principal Commissioner of Income-tax. The Revenue appealed against the relief granted by the Commissioner of Income-tax(Appeals)-National Faceless Appeal Centre, Delhi.…

Legal Issues

• 1. Whether the disallowance of interest expenses amounting to ₹496,57,84,051/- by the Assessing Officer was erroneous?
• 2. Whether the relief granted by the Commissioner of Income-tax(Appeals)-National Faceless Appeal Centre, Delhi, was justified?

Judgment Outcome

Decided in favour of Revenue.

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