Rail Vikas Nigam Limited vs. CIT (Appeals)

Parties Involved

Facts Summary

Rail Vikas Nigam Limited, a public sector construction company, filed its return of income for the assessment year 2021-22 declaring total income of Rs.646,21,76,710/-. The return was processed under section 143 (1) of the Income-tax Act, 1961, and the total income was computed at Rs.3317,74,52,060/-. The case was selected for scrutiny to verify the issue of receipt under section 194C of the Act and low net profit. Notices u/s 143(2) & 142(1) were issued on 28.06.2022. The assessee submitted relevant information in response. The Commissioner of Income Tax (Appeals) dismissed the appeal filed by the assessee, holding that the addition of Rs.26,54,02,75,345/- was made by the CPC under section 143 (1) of the Act while processing the return of income. The assessee appealed against this order to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. The Commissioner of Income Tax (Appeals) erred in law and on the facts in upholding the assessment order dated 28.12.2022 in relation to the disputed item under challenge.
• 2. The Commissioner of Income Tax (Appeals) erred in law and on the facts in allowing the addition of Rs. 26,54,02,75,345/- on account of disallowance under Section 37 of the IT Act without taking cognizance of the fact that Rs. 26,54,02,75,345/- was never debited to the profit and loss account for AY 2021-22 by the Appellant.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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