Safal Properties Private Limited

Parties Involved

Facts Summary

The original assessment was completed under section 143(3) of the Income Tax Act, 1961 on 16.10.2016 declaring loss of Rs. 'Nil' and Rs. 95,58,880/- as per the provisions of section 115JB of the Act. The assessment was completed on 14.05.2018 determining the total income of Rs. 49,31,600/- under the normal provisions and Rs. 95,58,880/- as per section 115JB of the Act. During the assessment proceeding, the Assessing Officer disallowed the excess interest expenses of Rs. 1,01,74,603/-, made disallowance under section 14A of the Act of Rs. 19,57,083/- and disallowance under section 40(a)(ia) of the Act of Rs. 76,31,958/- and determined the total income of Rs. 76,65,590/- and under section 115JB of the Act at Rs. 1,15,15,963/-. The assessee filed an appeal against the order of the Commissioner of Income Tax (Appeals) passed under section 250 of the Income Tax Act, 1961 for the Assessment Year 2016-17, dated 15.04.2024.…

Legal Issues

• 1. Disallowance under section 14A of the Act amounting to Rs. 19,57,083/-
• 2. Disallowance of Rs. 1,01,74,603/- on account of interest expenses

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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