Mohit Furnace Private Limited vs. The NFAC, Delhi

Parties Involved

Facts Summary

Mohit Furnace Private Limited, a company, filed its return of income for the Assessment Year 2021-22 on 15/03/2022, declaring total income of Rs. NIL/-. The case was selected under CASS under category 'Complete scrutiny.' Notices under section 143(2) of the Income Tax Act and other notices were issued, and the assessment was completed on 27/12/2022 with additions of Rs. 6,57,77,844/- under section 69C and Rs. 28,95,000/- as unexplained cash credits under section 68 of the Act. The assessee filed an appeal before the Commissioner of Income Tax (Appeals) (CIT(A)), which was dismissed. The assessee then filed an appeal before the Income Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Whether the order passed by the CIT(A) is bad both in the eye of law and on facts.
• 2. Whether the CIT(A) erred in passing the order without giving the assessee an opportunity of being heard in violation of the principle of natural justice.
• 3. Whether the CIT(A) erred in confirming the income of the appellant at Rs. 6,86,72,844/- as against income of Rs. 1,18,73,5-.
• 4. Whether the CIT(A) erred in confirming the addition of Rs. 6,57,77,844/- under section 69C by treating the purchases or part of the purchases as unexplained expenditure.
• 5. Whether the CIT(A) erred in confirming the addition of cash deposits in the bank account of the appellant of Rs. 28,95,000/- under section 68 r.w.s 115BBE by treating the same as unexplained credits.
• 6. Whether the CIT(A) erred in not taking the allegation to the logical conclusion after having held that the purchases are not genuine.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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