M/s K B Developers Vs. DCIT, Circle-43, Kolkata

Parties Involved

Facts Summary

The assessee, M/s K B Developers, filed a belated return of income on 17.03.2016 declaring a loss of Rs. 12,25,793/-. The case was processed under section 143(1) and selected for limited scrutiny through CASS for sundry creditors, investment in unlisted equities, and low income with high loans/advances/investments. The Assessing Officer (AO) observed that the assessee had provided professional fees of Rs. 5,00,000/- during the year and had an opening balance outstanding of Rs. 5,40,000/-. The AO noted that Rs. 7,00,000/- was paid during the year, resulting in a closing balance of Rs. 3,40,000/-. The difference between the opening and closing balance of Rs. 2,00,000/- was added to the income of the assessee under section 68 of the Act, which was confirmed by the Commissioner of Income Tax (Appeals).…

Legal Issues

• 1. Whether the addition of Rs. 2,00,000/- as made by the AO in respect of sundry creditor under section 68 of the Act is sustainable.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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