Killick Nixon Ltd, Mumbai vs. ACIT, Circle 10(1)(2)

Parties Involved

Facts Summary

The assessee company, engaged in the business of trading and marketing of paints, filed an income return for the A.Y 2017-18 disclosing a total income of Rs. Nil after set off of brought forward losses. The case was selected for scrutiny under CASS and notice u/sec 143(2) and u/sec 142(1) of the Act were issued. The Assessing Officer (AO) found that the assessee had made cash deposits into bank account and invoked the provisions of section 69A of the Act, making an addition of Rs. 1,95,10,783/-. The AO also invoked the provisions of Sec. 41(1) of the Act and made an addition of Rs. 1,26,67,319/-. The AO found that there was no reconciliation of contract income as per AIR to the extent of Rs.71,77,917/- and was treated as income of the assesse. The AO assessed the total income of Rs.4,51,70,450/- and passed the order u/sec 144 of the Act dated 20.12.2019. The assessee filed an appeal before the CIT(A), which was dismissed. The assessee then filed an appeal before the Hon'ble Tribunal.…

Legal Issues

• 1. The Learned CIT Appeals has erred in confirming assessment order passed u/s 144.
• 2. The Learned CIT Appeals has not given proper opportunity.
• 3. The Learned CIT Appeals has erred in confirming addition Rs. 1,95,10,783/- as a Cash deposit as deemed as unexplained money u/s 69 A of the Income Tax Act, 1961.
• 4. The Learned CIT Appeals has erred in confirming assessing the income of Rs. 1,95,10,753/-u/s115 BBE at the rate of 60 percent.
• 5. The Learned CIT Appeals has erred in confirming addition the amount of Rs. 1,26,67,319/- u/s 41(1)of the Income Tax Act 1961, by treating the same as cessation of liability.
• 6. The Learned CIT Appeals has erred in confirming addition of Rs. 71,31,977/- as income due to difference in AIR reconciliation.

Judgment Outcome

Decided in favour of Assessee.

Similar Judgements

• East Delhi Waste Processing Company Pvt. Ltd. Vs. DCIT

  Delhi Bench benchAY 2021-22Partly Allowed

• M/s Beacon Higher Education Services Pvt. Ltd. vs ACIT

  Delhi bench

• Nayana Digant Kapadia Vs. Income Tax Officer

  H(SMC) Bench, Mumbai benchAY 2017-18Allowed

• Shiv Marketing vs. Income tax Officer, Ward-4(2)

  Guwahati bench

• ITA No.2951/Del/2024

  Delhi Bench benchAY 2017-18Dismissed

• ITO Ward-16(3) Delhi vs Nischint A Kanoudia