The DCIT, Cir.4(1)(2) Polytechnic Ahmedabad Vs. Vishal Exports Overseas P.Ltd.

Parties Involved

Facts Summary

The assessee, Vishal Exports Overseas P.Ltd., is a public limited company engaged in the business of import, export, trading, and generation of electricity. For the Assessment Year 2015-16, the assessee filed its return of income declaring a loss of Rs.23,01,21,415/-. The case was selected for scrutiny, and the Assessing Officer (AO) issued a show cause notice stating that high seas purchases, job work, and sales were from/to the same party — M/s. Atlantis Products Pvt. Ltd. The AO disallowed the business loss claimed on manufacturing of plastic woven fabrics, holding that the activity was merely provision of licence services. The assessee appealed to the Commissioner of Income-tax (Appeals)-8, Ahmedabad (CIT(A)), which deleted the disallowance. The Revenue then appealed to the Income Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Whether the CIT(A) was correct in deleting the disallowance of business loss amounting to Rs. 22,33,94,780/-.
• 2. On the facts and circumstances of the case, the CIT(A) ought to have upheld the order of the Assessing Officer.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

Similar Judgements

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