Case Number: ITA 390/DEL/2019
Appellant: Home Developers Project Pvt. Ltd., New Delhi
Respondent: DCIT, Central Circle-14, New Delhi
Assessment Year: 2012-13
Case Filed On: 2019-01-18
Order Type: Final Tribunal Order
Date of Order: 2023-07-26
Pronounced On: 2023-07-26
Result: Partly allowed
The appeal was filed by Home Developers Project Pvt. Ltd. against the order of the CIT(A)-26, New Delhi, dated 05.10.2018, for the assessment year 2012-13. The primary grievance was the confirmation of additions made by the Assessing Officer (AO) under section 68 of the Income Tax Act, concerning unexplained credits amounting to Rs. 3,00,00,000 and other related issues.
The Tribunal observed that the assessee had provided substantial documentary evidence to discharge the initial burden under section 68, including copies of ITRs, bank statements, confirmations, and affidavits from the share applicant companies. The AO failed to scrutinize these documents adequately and relied solely on the statement of an alleged entry operator, Himanshu Verma, who was not produced for cross-examination. The Tribunal noted that without cross-examination, the statement could not be solely relied upon to make the addition. Therefore, the addition of Rs. 3,00,00,000 was deleted.
This ground was dismissed as it was not pressed by the appellant during the hearing.
The Tribunal found that the AO had erred in estimating the profit without rejecting the regular books of accounts maintained by the assessee. The addition based on estimation without such rejection was against the legal principles laid down by the Hon’ble High Court of Delhi. Hence, the addition of Rs. 12,80,000 was deleted.
The levy of interest under sections 234B and 234C was directed to be recalculated as per the relevant provisions of the law.
The appeal was partly allowed. The Tribunal directed the deletion of additions under sections 68 and 144 based on inadequate scrutiny and improper estimation. The procedural lapses, including failure to provide cross-examination and reliance on unverified statements, were highlighted as significant shortcomings in the assessment process.
Order Pronounced: 26/07/2023
For further details, refer to the complete judgment text available in the records of the ITAT, Delhi Bench.
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