Sky Automobiles Vs. DCIT, Circle-1(1), Raipur (C.G.)

Parties Involved

Facts Summary

Sky Automobiles, a dealership firm of Maruti Udyog Limited, filed its income return for the assessment year 2012-13 declaring an income of Rs.27,05,700/-. The case was selected for scrutiny assessment under section 143(2) of the Income Tax Act, 1961. The Assessing Officer completed the assessment under section 143(3) of the Act, determining the income at Rs.35,10,050/- after making certain additions and disallowances. The assessee appealed against the order passed by the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal. The Tribunal upheld the disallowance under section 14A of the Act but allowed the appeal regarding the addition of interest income based on incorrect TDS data.…

Legal Issues

• 1. Disallowance under section 14A of the Act
• 2. Disallowance under section 36(1)(va) of the Act
• 3. Addition of interest income based on incorrect TDS data

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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