Section 69C Not Attracted Where Expenses Are Recorded and Paid from Disclosed Sources

Sunwoda Electronic India Pvt. Ltd Vs ACIT/DCIT (ITAT Delhi) The Delhi Bench of the ITAT allowed the appeal of Sunwoda Electronic India Pvt. Ltd. for AY 2019-20 and deleted the entire addition of ₹3.17 crore made under section 69C of the Income-tax Act. The assessee, engaged in manufacturing lithium-ion batteries, had incurred expenditure on factory construction, fit-outs, renovation and IT installations through three contractors. The Assessing Officer, based on investigation inputs alleging accommodation entries, treated the expenditure as bogus and made an addition under section 69C. Althou...