Tug Indofin Pvt. Ltd. vs. DCIT, Circle-8(2), Kolkata

Parties Involved

Facts Summary

The assessee, Tug Indofin Pvt. Ltd., is engaged in the business of a Non-Banking Finance Company. It filed its return of income declaring a total income of Rs.(-)240910 for the assessment year 2017-18. The case was selected for Complete Scrutiny (CASS), and notices under section 143(2) and u/s 142(1) of the Income-tax Act, 1961, were issued by the Assessing Officer for the submission of documents. The Assessing Officer completed the assessment, making an addition of Rs.40,00,000 as unexplained cash credit under section 68 and calculating a disallowance under section 14A read with rule 8D amounting to Rs.34,90,337/-. Aggrieved by this order, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) (CIT(A)), which was dismissed. Subsequently, the assessee filed an appeal before the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the addition of Rs.40,00,000 on account of unsecured loan was correctly made by the Assessing Officer.
• 2. Whether the disallowance of Rs.19,45,409 under section 14A read with rule 8D was correctly made by the Assessing Officer.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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