This case involves Shiv Shakti Constructions, a firm based in Gautam Budh Nagar, and the Assistant Commissioner of Income Tax (ACIT), Central Circle-11, Noida. The appeal number ITA 2558/DEL/2022 pertains to the assessment year 2019-20.
The key issues revolve around the rejection of the appellant’s books of account and the applicability of various sections of the Income Tax Act, including Section 40A(3) and Section 145(3).
The Tribunal’s decision was influenced by the complex nature of transactions and the extensive documentation presented during the hearings. Special consideration was given to the nature of the business and the authenticity of the transactions recorded in the books of accounts.
The Tribunal provided a detailed analysis, reducing the total disallowance and granting substantial relief to Shiv Shakti Constructions. The final order emphasized the importance of adhering to procedural standards and the need for precise documentation in financial reporting for government contracts.
The judgement sets a precedent on how similar cases should be handled, especially in terms of bookkeeping requirements and the substantiation of claims against the Income Tax Department.
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