Appellant: DCIT, Circle – 52 (1), New Delhi
Respondent: Avdesh Mishra, 19, Rajdoot Marg, Chanakya Puri, New Delhi
Date of Case Filing: 02nd February 2021
Date of Order: 08th December 2022
Pronouncement Date: 08th December 2022
The Income Tax Appellate Tribunal, Delhi Bench ‘A’, New Delhi heard the appeal filed by the Revenue against the order of the CIT(A)-23, New Delhi dated 28th February 2020 for Assessment Year 2016-17.
During scrutiny assessment, the AO observed that the respondent claimed interest on a housing loan from Dayal Trust, of which the respondent was a trustee. The AO questioned the genuineness of the loan and interest payment due to discrepancies in the income shown by Dayal Trust.
The AO made additions of Rs. 2,91,00,849 under section 68 of the Act and Rs. 35,71,306 under section 69C of the Act. The respondent appealed to the CIT(A), submitting additional documents including the balance sheet and income details of Dayal Trust, confirming the loan and interest payments.
The CIT(A) remanded the case to the AO, who confirmed the genuineness of the transactions after examining the additional evidences. The CIT(A) directed the AO to delete the additions made.
The ITAT upheld the CIT(A)’s decision, dismissing the revenue’s appeal. It noted that the AO’s report supported the genuineness of the transactions based on the additional evidences submitted by the respondent.
The appeal filed by the Revenue against the order of the CIT(A) was dismissed by the ITAT, affirming the deletion of additions made by the AO.
Order pronounced in the open court on 08th December 2022.
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