In a recent ruling, the Delhi bench of the Income Tax Appellate Tribunal ( ITAT ) dismissed the appeal filed by the revenue as the bench was of the opinion that the addition of Rs. 14.3 crores made by the assessing officer ( AO ) was not supported by any incriminating evidence.
In this case, the revenue has appealed against the order of the Commissioner of Income Tax ( Appeals ) [ CIT ( A ) ].
The main issue involved in this case was whether CIT( A ) was justified in deleting the addition of Rs. 14.3 crores made by the assessing officer ( AO ).
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The assessee, Shalimar Lakecity Pvt. Ltd had filed its Income Tax Returns ( ITR ) for the assessment year ( AY ) 2013-14 by declaring a total loss of Rs. 19,98,293
After carrying out search and seizure operations on the Shalimar Group of cases, the AO completed the assessment proceedings under Section 153C of the Income Tax Act, 1961 in which loans amounting to Rs. 14.3 Crores were treated as unexplained and thus taxed under section 68 of the Act.
The assessee who was aggrieved by the above order, appealed before CIT(A), who deleted the entire addition of Rs. 14.3 crores.
It was contended by the counsel on behalf of the assessee that there was no incriminating material against the respondent for initiating proceedings under section 153C of the Income Tax statute.
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The ITAT observed that there was no adverse incriminating material or document found in the premises of the searched person based on which the addition was made.
The bench did not find any infirmity in the impugned order and upheld the order passed by the CIT( A ).
The ITAT comprising Yogesh Kumar US ( Judicial Member ) and Avdhesh Kumar Mishra ( Accountant Member ) dismissed the appeal filed by the assessee.
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The assessee was represented by Mr. Subhash Agarwal and the respondent by Ms. Jaya Choudhary.
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