Case Number: ITA 1302/DEL/2021
Appellant: ACIT, CC, Meerut
Respondent: Dev Priya Industries Ltd., Meerut
Assessment Year: 2016-17
Case Filed On: 2021-10-04
Order Type: Final Tribunal Order
Date of Order: 2023-04-28
Pronounced On: 2023-04-28
The appeal by the Revenue challenged the decision of the Commissioner of Income Tax (Appeals) in Kanpur, which deleted an addition of Rs.2.90 crore made by the Assessing Officer under Section 68 of the Income-tax Act. This addition pertained to alleged bogus share capital and unsecured loans said to be routed through entry operators.
The primary issue revolved around the addition based on unsecured loans/share application money from various parties, claimed to be bogus by the AO. Dev Priya Industries argued the genuineness of these transactions by providing extensive documentary evidence, including income returns, bank statements, and assessments of the depositors for the AY 2016-17. The ITAT, upon reviewing the documents and hearing both parties, affirmed the CIT(A)’s decision to delete the additions, noting that the transactions were consistent and recognized in previous assessments.
The Tribunal’s ruling supported the company’s stance, reinforcing the importance of substantial documentary proof in validating transactions questioned under Section 68. This case highlights the critical role of detailed financial documentation and historical consistency in resolving tax disputes.
Order pronounced in the open court on 28/04/2023.
Judicial Member: Shri Anubhav Sharma
Accountant Member: Shri N.K. Billaiya
Order Dated: 28/04/2023
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