Sri Sumeru Housing Private Limited vs. DCIT

Parties Involved

Facts Summary

The assessee, Sri Sumeru Housing Private Limited, is a company engaged in the business of real estate. The company filed its Return of Income for the assessment year 2015-16 declaring a total loss of Rs.32,26,950/-. The return was scrutinized by the Assessing Officer (AO) who concluded the assessment on 26/12/2017 under section 144 of the Income Tax Act, determining the total income of Rs.19,39,920. The AO made additions of Rs.51,66,870/- by disallowing 20% of certain expenses as unreasonable. The assessee filed an appeal against the order passed by the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC) dated 05.06.2024. The appeal was dismissed by the CIT(A)/NFAC as the assessee had not availed opportunities to present its case. The assessee filed the present appeal before the Tribunal.…

Legal Issues

• 1. Whether the disallowance of expenses by the AO was justified?
• 2. Whether the penalty levied under section 271(1)(c) was appropriate?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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