Vedant Fashions Limited has received an Order dated November 29, 2024 from Income Tax Appellate Tribunal, Kolkata "B" Bench, (ITAT) Kolkata. The Company filed an appeal before the ITAT a previous order from the Commissioner of Income Tax (Appeals)-21, Kolkata [CIT(A)], dated January 30, 2024, in relation to its Return of Income for the AY 2020-21. Details of the violation: The Assessing Officer made an addition of INR 6,515,719 to the company's income under Section 14A of the Income Tax Act,
1961, based on Rule 8D, where disallowance was made on the exempt income. The Company appealed to CIT(A), who upheld
the addition by the AO and directed the AO to rectify the disallowance to INR 6,790,605. The Company made a further appeal
in ITAT, which deleted the aforesaid addition and passed the order in favour of the Company.
Vedant Fashions Limited is an India-based company. The Company is primarily engaged in manufacturing, trading, and sale of ready-made ethnic wear for men, women, and kids primarily in India under the brand names Manyavar, Mohey, Mebaz, Twamev, and Manthan. The Company has only one reportable segment, which is branded fashion apparel and accessories. The Companyâs products include men's kurta pajama, kurta jacket sets, only kurtas, nehru jacket, indo-western, sherwani, and accessories, such as juti, safa, mala, and others. Womenâs ethnic and celebration wear items, such as lehenga, sarees, indo-western, stitched-suits, and accessories. Kids products include an indo-western, kurta jacket set, kurta pajama, and accessories. The Company has approximately 676 stores and 16 global stores in 255 Indian cities and 13 global cities. The Company has its international branded outlets in the United Arab Emirates, United States, Canada, and the United Kingdom.
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