Techno Teaching Infosolution Pvt. Ltd. Vs. DCIT, Circle-1(2), Kolkata

Parties Involved

Facts Summary

The assessee, Techno Teaching Infosolution Pvt. Ltd., filed its return of income for Assessment Year 2012-13 declaring total income at Nil and subsequently filed a revised return also declaring total income at Nil. The case was selected for scrutiny and a notice under section 143(2) was issued. After discussions, the Assessing Officer disallowed an amount of Rs. 4,11,99,736/- and added it back to the total income. Additionally, amounts of Rs. 6,654/- on TDS, Rs. 1 lacs fee for increase of authorized share capital, and Rs. 1,04,05,000/- under section 68 of the Act were added. Aggrieved by this order, the assessee appealed to the Commissioner of Income Tax (Appeal)- NFAC, Delhi, whose order was also adverse to the assessee. Consequently, the assessee filed the present appeal. The counsel for the assessee argued that the Assessing Officer and the Commissioner of Income Tax (Appeal) did not properly appreciate the facts, particularly regarding the revenue recognition for software sales with warranty services.…

Legal Issues

• 1. Whether the Assessing Officer correctly disallowed the claim of Rs. 4,11,99,736/- and added it back to the total income.
• 2. Whether the addition of Rs. 1,00,000/- was correctly made.
• 3. Whether the addition under section 68 of the Act was correctly made.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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