Tongani Tea Company Limited
Case No: ITA No. 1651/KOL/2024
Court: INCOME TAX APPELLATE TRIBUNAL, ‘SMC’ BENCH, KOLKATA
Date: 3/17/2025
Parties Involved
appellantTongani Tea Company Limited
respondentIncome Tax Officer
Facts Summary
The assessee, Tongani Tea Company Limited, filed its return of income for the assessment year 2017-18 declaring a total income of Rs.58,800/-. The case was selected for scrutiny, and notices under sections 143(2) and 142(1) were issued. The Assessing Officer observed that the company had gross interest of Rs.26,78,924/- and interest on HP loan (written back) of Rs.27,34,508/-, which should be considered as central income unrelated to the tea business profit. The company claimed a 60% deduction o…
Decision in favour of
Assessee
Legal Issues
- 1. Whether the Ld. CIT(A) misunderstood the ground raised in appeal regarding the addition of 60% of Rs.27,34,508/-, being the amount of interest written back in relation to HP (Hire Purchase) Loan which was no longer payable.
- 2. Whether the CIT(A) erred in confirming the addition of 60% of Rs.27,34,508/- made by the AO.