INFINITE EXPEDITIONS PVT. LTD.,MODINAGAR, GHAZIABAD, UTTAR PRADESH V. INCOME TAX OFFICER, WARD 2(1)(1), GHAZIABAD, GHAZIABAD

ITA 6968/DEL/2025

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Infinite Expeditions Pvt. Ltd. appealed against the order of the CIT(A) sustaining the additions made under section 68 of the Income Tax Act, 1961, amounting to Rs. 21,39,398, which were alleged unexplained cash credits in the company's bank statements. The primary contention was that the statutory notice under section 148 was improperly issued, and the assessment proceedings violated principles of natural justice. The Tribunal examined the procedural validity of the notice, the adequacy of the opportunity given to the assessee to explain the credits, and the sufficiency of the evidence provided by the assessee to substantiate the source of the credits. The Tribunal concluded that the assessee had discharged its burden by providing detailed explanations and documents, and the revenue had not adequately countered these submissions.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 822677 (ITAT-DELHI)
• Duration Of Justice: 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2018-2019
• Appeal Filed On: 31-10-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIRENDRA KUMAR SINGH
• Assessee Lawyers: LAKSHAY GUPTA
• Keywords: Opportunity of being heard; Reassessment proceedings; Unexplained cash credit; Onus to prove; Principle of natural justice
• Section: 147; 148; 68; 10

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, DELHI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER ITA No. 6968/DEL/2025 (AY: 2018-19) (Physical hearing) Infinite Expeditions Pvt. Ltd. B.K. Complex, S-3, Opp. Krishna Kunj Colony, Tibra Road, Modinagar, Ghaziabad, Uttar Pradesh-201204 [PAN: AAECI0872M] Vs Income Tax Officer, Ward 2(1)(1), Ghaziabad. Income Tax Building, CGO Complex-1, Purani Hapur Chungi, Ghaziabad, Uttar Pradesh-201002 Appellant / Assessee Respondent / Revenue Assessee by Shri Lakshay Gupta, CA Revenue by Shri Virendra Kumar Singh, Sr. DR Date of institution of appeal 31.10.2025 Date of hearing 01.12.2025 Date of pronouncement 23.12.2025 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER; 1. This appeal by assessee is directed against the order of ld. CIT(A) dated 14.10.2025 for A.Y. 2018-19. The assessee has raised following grounds of appeal: (1) That impugned assessment proceeding-initiated u/s 147 of the Income Tax Act, 1961 (hereinafter referred as the act) vide statutory notice dated 30.03.2022 issued u/s 148 of the act is non-est and void being said notice has been issued in gross contravention of e-Assessment of Income Escaping Assessment 1 Scheme, 2022 notified by Honourable CBDT u/s 151A of the act on 29.03.2022 vide CBDT Notification No. 18/2022 as the authority prescribed and empowered to issue such statutory notice u/s 148 of the act lies with Faceless Assessing Officer and not with the Jurisdictional Assessing Officer. As such, impugned assessment proceeding deserves to be quashed at the threshold. Printed from counselvise.com ITA No. 6868/ Delhi /2025 Infinite Expeditions Pvt Ltd. (AY 2018-19) 2 (2) That the Ld. Income Tax Officer, Ward 2(1)(1), Ghaziabad (hereinafter referred as Ld. JAO) had erred in law and facts of the matter by initiating proceeding u/s 148A of the act merely on the basis of certain information flagged on insight portal to conduct further investigation to verify the authenticity and veracity of said information without even confronting the material available on record. Thereby, Ld. JAO had contravened the principle of natural justice and consequently, said enquiry proceeding and subsequent assessment proceeding deserves to be quashed. (3) That the Ld. CIT(A) has erred in law and facts of the matter while sustaining the Assessment Order without appreciating that the additions have been made without providing adequate opportunity of being heard to the Appellant. As such, the Assessment Order passed in violation of the principle of natural justice is illegal and may please be quashed. (4) That the Ld. CIT(A) had erred in law and facts of the matter by confirming the additions of Rs. 21,39,398/- made u/s 68 of the act on account of alleged unexplained cash credit found in the bank statements of appellant without appreciating the fact that said credits were duly recorded in books of accounts of the appellant and were appropriately reported in Audited Financial Statements prepared for the period under consideration. As such, the addition of Rs. 21,39,398/- is bad in law and may please be deleted. (5) That the Ld. CIT(A) had erred in law and facts of the matter by confirming the additions of Rs. 21,39,398/- made u/s 68 of the act on account of alleged unexplained cash credit found in the bank statements of appellant merely under the apprehension that the appellant company was not found at the registered address during the course of inspection conducted by the office of Investigation Wing of the Income Tax Department without appreciating the fact that the appellant had shifted its business premises from address, WHARE inspection was conducted and details of subsequent address were duly reported in ITRs filed for AY's subsequent to such shifting. Thereby, additions of Rs. 21,39,398/- made solely on the basis of Printed from counselvise.com ITA No. 6868/ Delhi /2025 Infinite Expeditions Pvt Ltd. (AY 2018-19) 3 inappropriate apprehension drawn by another statutory authority without proper application of mind deserves to be deleted. 2. Brief facts of the case are that assessee company filed its return of income for assessment year (A.Y.) 2018-19 on 21.09.2018 declaring income of Rs.1,19,492/-. Initially return was processed under section 143(1). Subsequently, case was reopened under section 147 on the basis of information with the Assessing Officer under risk management strategy of Central Board of Direct Taxes (CBDT). The assessing Officer has information that assessee has unexplained credit of Rs.21,39,938/- in its bank account. The Assessing Officer noted that under section 148A (b) was issued to the assessee. The assessee neither attended nor filed any reply accordingly, order under section 148A (d) was passed on 30.03.2022. Consequent, upon notice under section 148 dated 30.03.2022 was also issued. The Assessing Officer recorded that in response to notice under section 148 dated 30.03.2022, the filed its return of income on 24.11.2022 declaring income of Rs.1,19,492/-. The Assessing Officer further recorded that assessee furnished certain information in response to various notices. On the basis of such information the Assessing Officer recorded that assessee engaged in the business of tour operator and allied services. The assessee has shown commission income from such activities. The Assessing Officer further recorded that during the relevant financial year, the assessee was held unexplained credit of Rs.21,39,938/- and on show cause notice, the assessee furnished his reply and submitted that there is no unexplained credit in its bank accounts. Reply of assessee was not Printed from counselvise.com ITA No. 6868/ Delhi /2025 Infinite Expeditions Pvt Ltd. (AY 2018-19) 4 found satisfactory by Assessing Officer. The Assessing Officer issued fresh show cause notice dated 15.02.2023. In fresh show cause notice, the Assessing Officer asked for copy of bank book, cash book and the document evidence in support of credit entries in the bank account and as to why such credit be not added to the total income. The Assessing Officer recorded that the assessee in his reply again repeated similar contention that they have already furnish the required details. The Assessing Officer recorded that no credible information is provided about source of credit of Rs.21,39,398/- and treated such credit as unexplained credit and taxed the same under section 115BBE in the assessment order dated 28.02.2023. 3. Aggrieved by the additions in the assessment order, the assessee filed appeal before CIT(A). The assessee raised ground of appeal that reasonable opportunity of hearing was not given. The assessee also challenged the additions on merit. The assessee, on service of notice under section 250 filed their detailed written submissions. The submission of assessee are recorded at Page No.3 to 19 of order of CIT(A). In the written submissions, the assessee stated that the assessee’s company is in the business of tour operator and allied activities. The assessee is maintaining proper books of account which are subject to audit. The assessee filing return of income regularly with the audited balance sheet and tax audit report. Notice under section 148A was received on 31.03.2022. The assessee could not filed any response to such notices thereafter, order under section 148A (d) dated 30.03.2022 was issued by Assessing Officer. Printed from counselvise.com ITA No. 6868/ Delhi /2025 Infinite Expeditions Pvt Ltd. (AY 2018-19) 5 In the notice under section 148 dated 30.03.2022, the assessee was asked to file return of income in prescribed form, copy of notice was filed. Return of income was not filed within 30 days as required in notice under section 148. However, the assessee filed return of income on 24.11.2022. The assessee was issued intimation letter dated 17.08.2022 for assessment of case to faceless unit. The assessee was served notice dated 10.01.2023 asking the assessee to furnish certain information. On the very next day that is on 11.01.2023 another notice was issued to the assessee to file reply on or before 23.01.2023. The assessee was under process of collecting papers and before the assessee could file reply on 20.01.2023 another notice dated 23.01.2023 was served upon the assessee to file reply within four days. The assessee furnished his reply on ITBA portal with relevant documents. The Assessing Officer passed assessment order without considering the reply furnished by assessee on 14.02.2023 and 20.02.2023 and explained credit entry. The assessing officer made addition under section 68 and taxed the same under section 115BBE. The assessee submitted that they are maintaining three bank account i.e. YES Bank, ICICI Bank and Punjab National Bank. The bank accounts and name of Branches are mentioned at page no.18 of Order of CIT(A). The contended that assessee received total amount of Rs.21,39,938/- in YES Bank account. All the transactions were recorded in the books of account as per nature of transactions. The assessee furnished party wise detail of all the Printed from counselvise.com ITA No. 6868/ Delhi /2025 Infinite Expeditions Pvt Ltd. (AY 2018-19) 6 advances with complete nature of transaction. For appreciation of fact such details are recorded as under: 4. The assessee further stated that entire credit was disclosed in the books along with nature and source. About the observation of Assessing Officer bank book was not produced, the assessee referred the screenshot of ITBA portal, wherein complete details of YES Bank was furnished. The assessee submitted that nature and source of credit was duly explained and the Assessing Officer erred in making such addition under section 68. 5. The ld. CIT(A) after considering the submission of assessee noted that on perusal of assessment order it is seen that assessee has failed to give details of identity of their clients. The assessee has only given the name of Printed from counselvise.com ITA No. 6868/ Delhi /2025 Infinite Expeditions Pvt Ltd. (AY 2018-19) 7 the clients without their address and identification proof. The assessee as in the business of tour and travel, it is not possible that basic detail of client like address and identity and proof were not taken while making their bookings. The ld. CIT(A) on such observation held that assessee failed to prove the identity of their client. Further, aggrieved the assessee has filed present appeal before Tribunal. 6. I have heard the submission of ld. Authorized Representative (ld. AR) of the assessee and the ld. Senior Departmental Representative (Sr. DR) for the revenue and have gone through the orders of lower authorities carefully. The ld. AR of the assessee submits that assessee is in the business of tour operator. The assessee during the relevant financial year was running its business from C-387 Swarna Jayanti Puram Ghaziabad. The assessee shifted its office from Ghaziabad to Modinagar. The address of assessee during the period when reassessment proceedings was initiated was shifted to Modinagar. The assessee in response to various show cause notice furnish reply. The Assessing Officer instead of considering such reply made additions on account of unexplained credit. Before CIT(A) the assessee furnished complete details. The ld. CIT(A) despite recording all such details confirm the action of Assessing Officer by holding that Assessing Officer has not filed details of identity of persons. The assessee has furnished complete details of the creditors along with nature and purpose of amount credit in his bank account. The assessee furnished complete details of all the persons, copy of KYC document of such persons Printed from counselvise.com ITA No. 6868/ Delhi /2025 Infinite Expeditions Pvt Ltd. (AY 2018-19) 8 are placed on record at page no.252 to 271 of paper book. The assessee has completely discharge his onus. Once the assessee is discharged his primary onus, the onus shifts on the revenue authority to investigate the issue and to bring adverse material if any. Mere giving finding that assessee has not given complete details of its clients, is not correct. The ld. AR of the assessee submits that once assessee is discharge his onus, no addition is to be made against the assessee. The ld AR of the assessee submits that he was not served with notice under section 148. When notice under section 148 was allegedly issued the address of assessee was changed. The assessee is its return of income for subsequent assessment years duly informed about its new address. 7. On the other hand, the ld. DR for the revenue supported the order of lower authorities. The ld SR DR for the revenue submits that in absence of complete details of creditors, the ld CIT(A) confirmed the action of assessing officer. 8. In short rejoinder, the ld AR of the assessee submits that complete details of creditors were furnished by the assessee to the assessing officer as well as to ld CIT(A), both the lower authorities failed to appreciate the evidence. All such evidences, which were filed before lower authorities have been placed on record. 9. I have considered the rival submission of both the parties and have gone through the orders of lower authorities carefully. I find that Assessing Officer made addition under section 68 by taking view that the Assessee Printed from counselvise.com ITA No. 6868/ Delhi /2025 Infinite Expeditions Pvt Ltd. (AY 2018-19) 9 has not furnished complete details in respect of credit of Rs. 21,39,938/-. I find that before ld. CIT(A), the assessee filed a very detailed written submission as recorded above. I also find that as per page 19 of order of CIT(A) the assessee furnish complete detail of his client along with the nature and purpose of such credit. The ld. CIT(A) instead of seeking any further clarification or reply from assessee, simply concluded that assessee has not furnished complete details. Before me the assessee has furnished proof of identity of various persons from whom the assessee has received such credit. The ld AR of the assessee has also certified that documents mentioned in serial no. 19 were furnished before AO/CIT(A). On careful perusal of all the details of nine persons, I find that assessee has furnished their name, address or copy of passport. Thus, complete details were provided to the ld CIT(A). Further, out of total credit of Rs. 21,39,938/-, Rs.1,50,000/- was received from assesses own account in ICICI Bank. I find that once the assessee has discharge primary onus in providing details and nature of credit, burden of proof shift on the revenue/revenue to prove it otherwise. I find that ld. CIT(A) instead of giving finding on facts of assessee case, relied on the case laws, facts of which are at variance. In my considered view, once the assessee has given complete details to substantiate the credit, onus shifts on the CIT(A) either to investigate of his own or to seek remand report of the Assessing Officer, which the ld. CIT(A) completely failed. Thus, in view of the aforesaid discussion, I do not find any justification in the order of CIT(A) in confirming the order above Printed from counselvise.com ITA No. 6868/ Delhi /2025 Infinite Expeditions Pvt Ltd. (AY 2018-19) 10 under section 68. In the result, grounds of appeal raised by assessee are allowed. 10. In the result appeal of the assessee is allowed. Order pronounced on 23rd December 2025 by placing result on the notice board at Delhi Benches. PAWAN SINGH JUDICIAL MEMBER MUMBAI, Dated: 23/12/2025 Saumya Sr PS Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Mumbai; and (5) Guard file. By Order Assistant Registrar ITAT, Delhi Printed from counselvise.com "