The Income Tax Appellate Tribunal (ITAT) Delhi Bench ‘F’ delivered its judgment on the appeal filed by Yatra Corporate Hotel Solutions Pvt Ltd against the order of the Commissioner of Income Tax (Appeals)-1, Gurgaon, for the assessment year 2014-15. The case was heard by Shri G.S. Pannu, Hon’ble President, and Shri Anubhav Sharma, Judicial Member, through video conferencing.
Yatra Corporate Hotel Solutions Pvt Ltd (formerly known as Intech Hotel Solutions Pvt Ltd) filed an appeal challenging the order passed by the CIT (A)-1, Gurgaon. The primary contention was against the addition of Rs. 25,39,704 made by the Assessing Officer (AO) under section 68 of the Income Tax Act, 1961, as unexplained cash credits.
Despite repeated notices, no one appeared on behalf of the appellant, and the report on the notices mentioned that the appellant had left the given address. The learned Departmental Representative (DR) supported the findings of the tax authorities below.
In the assessment order, the AO noted that the appellant company had trade payables/creditors amounting to Rs. 25,39,704. The appellant was asked to furnish ledger confirmations of the creditors, but failed to do so despite various reminders. The appellant provided details of the creditors but did not furnish the necessary confirmations to support the claims.
The CIT (A) sustained the additions due to the appellant’s failure to provide confirmation from Chitra Pat Audio Visual and for taking contradictory stances with respect to D.V. Travels Guru Pvt. Ltd. There was no other material on record to indicate that the findings were factually incorrect.
The Tribunal concluded that the grounds of the appeal had no substance and dismissed the appeal. The Tribunal noted that the appellant failed to discharge the onus of proving the genuineness of the creditors’ balances and thus upheld the findings of the lower authorities.
The appeal filed by Yatra Corporate Hotel Solutions Pvt Ltd was dismissed due to the inability to substantiate the outstanding balances of sundry creditors as genuine, thereby confirming the addition under section 68 of the Income Tax Act, 1961.
Order pronounced in open court on this 4th day of May, 2023.
sd/- (G.S. PANNU) PRESIDENT
sd/- (ANUBHAV SHARMA) JUDICIAL MEMBER
Dated the 4th day of May, 2023
*MP*
Copy forwarded to:
Manage the increasing number of hearings effortlessly by leveraging the legal AI revolution We are India's Leading revolutionary AI-powered legal platform where you can get enough insights into top cases and judgements.
Research Platform