This summary covers the legal proceedings of ITA No. 1147/DEL/2019 involving KRBL Infrastructure Ltd, the appellant, and the ACIT, Central Circle-7, New Delhi, the respondent. The case, filed on February 13, 2019, reached its conclusion on July 11, 2022, with a decision by the Income Tax Appellate Tribunal, Delhi Bench ‘C’.
KRBL Infrastructure Ltd faced scrutiny for financial transactions for the assessment year 2016-17. The primary issue was an addition of Rs. 3.85 crores under section 68 of the Income-tax Act, 1961, claimed to be loans from M/s Index Securities and Research Pvt Ltd, along with interest payments.
The proceedings were presided over by Shri N.K. Billaiya, Accountant Member, and Ms. Astha Chandra, Judicial Member. Represented by Shri Vinod Kumar Bindal, CA, and Ms. Pinky Sharma, ITP for the appellant, and Ms. Aashna Paul, CIT-DR for the Department, the case was meticulously argued over several hearings.
The appellant contested the addition, arguing that the loan transactions were genuine, substantiated by financial records and repayment evidence. The Department, however, maintained that these transactions were not genuine, based on assumptions and statements from third parties without corroborative evidence.
After reviewing the evidence and submissions, the tribunal concluded that the appellant had adequately demonstrated the legitimacy of the loan transactions. The decision emphasized that the addition of Rs. 3.85 crores was unwarranted as there was no incriminating material linking the transactions to undisclosed income.
The tribunal ordered the deletion of the impugned additions from the assessment year 2016-17, affirming that the appellant had met the burden of proof under section 68 of the Income-tax Act. The judgment was pronounced in the open court on July 11, 2022.
This case highlights the importance of robust documentation and clear financial records in defending against allegations of undisclosed income. The tribunal’s decision reaffirms the necessity for concrete evidence in making additions under section 68, setting a precedent for similar disputes in the future.
Tax Dispute Resolution for KRBL Infrastructure in ITA No. 1147/DEL/2019
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