Case Number: ITA 1489/DEL/2019
Appellant: Vidya Shree Buildcon Pvt Ltd, Delhi
Respondent: ACIT Circle 26(2), New Delhi
Assessment Year: 2014-15
Result: 2014-15
Case Filed On: 2019-02-22
Order Type: Final Tribunal Order
Date of Order: 2022-03-31
Pronounced On: 2022-03-31
Bench: Delhi Bench ‘F’, New Delhi
Members: Shri G.S. Pannu (President) and Shri Saktijit Dey (Judicial Member)
This case involves the appeal filed by Vidya Shree Buildcon Pvt Ltd against the order of the Commissioner of Income-Tax (Appeals)-9, New Delhi, dated 21.12.2018 for the assessment year 2014-15. The primary issue revolves around the addition of Rs. 2.2 crores as unexplained cash credits under Section 68 of the Income Tax Act, 1961.
The appellant, Vidya Shree Buildcon Pvt Ltd, filed its return of income for the assessment year 2014-15 on 31.03.2015, declaring a total income of Rs. 55,15,440. During the assessment proceedings, the Assessing Officer (AO) noticed a substantial increase in unsecured loans in the audited balance sheet.
The AO requested details and supporting evidence for the unsecured loans to verify their genuineness. Despite several opportunities, the appellant failed to provide the necessary information, including the addresses and supporting documents to prove the identity, creditworthiness, and genuineness of the loan transactions.
During the hearing on 23/03/2022, no one appeared on behalf of the appellant. The hearing notice issued to the appellant was returned un-served with the postal remark “Left”. This indicated a lack of interest in pursuing the appeal, leading to an ex parte hearing based on the facts and materials available on record.
The Tribunal found that the appellant did not furnish any supporting evidence to establish the identity and creditworthiness of the creditors or the genuineness of the loan transactions during the assessment proceedings. The additional evidences presented before the Commissioner (Appeals) were primarily the appellant’s own documents, which should have been available during the initial proceedings. The Tribunal upheld the Commissioner (Appeals)’s decision to reject the additional evidence, as the appellant failed to provide a satisfactory explanation for not presenting them earlier.
The Tribunal concluded that none of the ingredients of Section 68 of the Income Tax Act, which require proving the identity, creditworthiness, and genuineness of the creditors, were satisfactorily established by the appellant. Therefore, the addition of Rs. 2.2 crores as unexplained cash credits was upheld.
The appeal was dismissed, and the decision was pronounced in the open court on 31.03.2022.
In the result, the appeal by Vidya Shree Buildcon Pvt Ltd was dismissed due to the lack of evidence supporting the genuineness of the unsecured loans. The Tribunal emphasized the importance of furnishing necessary documentation during assessment proceedings to avoid such adverse outcomes.
Decision: Appeal dismissed.
Signed by: Shri G.S. Pannu (President) and Shri Saktijit Dey (Judicial Member)
Date: 31.03.2022
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