Subhash Chander vs DCIT

Parties Involved

Facts Summary

The assessee, Subhash Chander, undertook job work for M/s Orient Craft Ltd. During the assessment, the Assessing Officer disallowed the job work charges and made an addition on a substantive basis in the case of M/s Orient Craft Ltd. A corresponding addition was made in the case of the assessee on a protective basis. The Commissioner of Income Tax (Appeals) [CIT(A)] confirmed the disallowance in the case of M/s Orient Craft Ltd. and modified the disallowance in the case of the assessee to 5% of the total disallowance. The assessee appealed against this order, and the Tribunal allowed the appeal, holding that the job work charges were genuine. Subsequently, the Revenue filed a rectification application, which the CIT(A) considered and passed an order reviving the protective addition. The assessee then filed these appeals against the rectification order.…

Legal Issues

• 1. Whether the CIT(A) erred in law and on facts in passing the impugned rectification order under section 154.
• 2. Whether the CIT(A) erred in reviving the protective addition.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Subhash Chander Vs Income Tax Officer, Ward-4, Rohtak, Haryana

• Orient Craft Ltd. vs DCIT Central Circle-II Gurgaon

• Income Tax Officer, Ward no.2(2)(1), First Floor, CGO-2, Kamla Nehru Nagar, Ghaziabad, Uttar Pradesh-201002 Vs M/s New Shakti Abhushan Bhandar, Chopla Mandir, New Gate, Ghaziabad, Uttar Pradesh-201001

  Delhi Bench benchAY 2017-18Partly Allowed

• Orient Craft Limited Vs. The Dy, C.I.T

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  Delhi Bench benchAY 2013-14Allowed