ITA No. 7260/Del/2025: Shabdarth vs DCIT

Parties Involved

Facts Summary

The assessee filed its revised return of income for A.Y. 2022-23 on 31.10.2022 declaring total income of Rs.17,91,20,490/-. The case was selected for limited scrutiny under CASS and notices under sections 143(2) and 142(1) of the Income Tax Act, 1961 were issued. The Assessing Officer completed the assessment under section 143(3) of the Act vide order dated 27.03.2024 making an addition of Rs.94,57,65,069/- on account of alleged difference between receipts disclosed in the return of income and Form 26AS and an addition/disallowance of Rs.35,62,616/- in respect of other expenses. The assessee filed an appeal before the ld. CIT(A) who dismissed the appeal, observing that despite several opportunities, the assessee had neither filed any written submissions nor furnished any supporting documents in support of the grounds raised in appeal.…

Legal Issues

• 1. Addition of Rs 94,57,65,069/- under business income due to difference between business receipts in ITR and Form 26AS.
• 2. Addition of Rs 35,62,616/- on adhoc basis @ 12.5% of other expenses under section 37 of the Income Tax.
• 3. Addition of Rs 35,62,616/- on basis of reliance on judgment of Gujarat High Court in case of CIT vs Simit P. Sheth.

Judgment Outcome

Decided in favour of Assessee.

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