Pernia Qureshi Consultancy Pvt Ltd Vs. The Dy. C.I.T

Parties Involved

Facts Summary

The assessee, Pernia Qureshi Consultancy Pvt Ltd, is engaged in the business of online trading of designer clothes, accessories, shoes, etc., under the brand name 'Pernia Pop-up Shop'. A search and seizure action was conducted on the company on 15.02.2014. The assessee filed a return of income declaring a loss of Rs 75,63,909/- on 16.10.2015. The Assessing Officer completed the assessment under section 143(3) of the Income-tax Act, 1961, at Rs 1,67,99,840/-. Various additions were made by the AO, which were subsequently confirmed or modified by the CIT(A). The assessee appealed against these additions, raising several grounds of grievances.…

Legal Issues

• 1. General grievance regarding the order passed by CIT(A).
• 2. Disallowance of 50% of certain expenses.
• 3. Disallowance of 30% of certain purchases.
• 4. Addition on account of cash salary paid to Mr. V. Prabhakar Sastry.
• 5. Addition on account of salary paid to Ms. Pernia Moin Qureshi.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Liberty Shoes Ltd. vs PCIT

  Other

• DCIT, Central Circle -1(1), Kolkata vs. Bentec India Ltd

  Kolkata Bench benchAY 2014-15Dismissed

• Bank of India vs. Assistant Commissioner of Income Tax – 2(1)(2)

• MC Mowjee & Co. Private Limited Vs. ITO Ward-4(1)

  Kolkata benchAY 2015-16Allowed

• Biswas Manik vs. Income Tax Officer

  Ahmedabad bench

• M/s. Ankalan Web Solutions Pvt. Ltd. Vs. DCIT

  C Bench, Bangalore benchAY 2018-19Allowed