Arya Roadways Company Pvt. Vs ITO (ITAT Kolkata)
The decision of the Income Tax Appellate Tribunal Kolkata pertains to Assessment Year 2011–12 and arises from an appeal filed by the assessee against the order dated 21.11.2024 passed by the Commissioner of Income Tax (Appeals), NFAC, Delhi under Section 250 of the Income Tax Act, 1961.
The assessee had originally filed its return declaring total income of ₹7,12,840, which was processed under Section 143(1). Subsequently, based on information received from the Investigation Wing regarding suspicious transactions involving a third party, the Assessing Officer (AO) reopened the assessment under Section 147 by issuing notice under Section 148. The AO noted that the assessee had made payments of ₹1,01,00,000 to a contractor against lorry hire charges amounting to ₹1,06,02,158 during the relevant financial year. Examination of the contractor’s bank account revealed that funds received via RTGS were withdrawn in cash immediately or within a day. The AO also observed deficiencies in supporting documents, including lack of details such as truck numbers, dates, and quantities. Based on these findings, the AO treated the expenditure as bogus and disallowed ₹1,06,02,158, assessing total income at ₹1,13,14,998 under Sections 147/144.
The CIT(A) upheld the assessment order, noting that the AO had conducted enquiries through notices under Sections 133(6) and 131 and that the assessee failed to substantiate its claims. The appeal was dismissed, including jurisdictional objections.
