Sunwoda Electronic India Pvt. Ltd Vs. ACIT/DCIT

Parties Involved

Facts Summary

The assessee, Sunwoda Electronic India Pvt. Ltd, is a private limited company engaged in the business of manufacturing lithium-ion batteries used in mobile phones at its factory premises in Noida. The original return of income for AY 2019-20 was filed admitting a loss of Rs. 14,75,62,311/-. The Assessing Officer (AO) alleged that the assessee had taken accommodation entries in the form of bogus expenses from three entities: Huake Engineering India Pvt. Ltd, Zhonghua (India) Eng. Pvt. Ltd, and Chimsen Technology Pvt. Ltd, totaling Rs. 3,17,23,379/-. The assessee provided detailed explanations and documents to prove the genuineness of these transactions. Despite this, the AO added Rs. 3,17,23,379/- under Section 69C of the Income-tax Act, 1961. The National Faceless Appeal Centre (NFAC) deleted the addition related to Huake Engineering Pvt. Ltd but confirmed the addition for the other two parties.…

Legal Issues

• 1. Non-applicability of provisions of Section 69C of the Income-tax Act, 1961 to the transactions with the three entities.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Stryker Global Technology Centre Private Ltd., vs. DCIT, Circle 22 (2)

  Delhi Bench ‘H’: New Delhi benchAY 2020-21Partly Allowed

• Vijay Pal Singh

  C Bench, Delhi benchAY 2012-13Partly Allowed

• JCB India Ltd. vs ACIT

  Other

• Dy. CIT, Circle-11(1), New Delhi. Vs. M/s Exxon Mobil Lubricants Pvt. Ltd.

  Delhi Bench ‘I’, New Delhi benchAY 2005-06Partly Allowed

• M/s. Tractors and Farm Equipment Ltd. Vs. The Dy. Commissioner of Income Tax, Corporate Circle-3(1), Chennai

• Ms. Ruby Singh Vs. Deputy Commissioner of Income Tax

  Delhi Bench benchAY 2017-18Allowed