Yatra Corporate Hotel Solutions Pvt Ltd, Gurgaon V. ACIT Circle-2(1), Gurgaon

ITA 5166/DEL/2019

AI Insights

The case involves M/s Yatra Corporate Hotel Solutions Pvt. Ltd., which appealed against the order of the Commissioner of Income Tax (Appeals)-1, Gurgaon, confirming an addition of Rs. 25,39,740 to the assessee's income for the assessment year 2014-15. This addition was initially made by the Deputy Commissioner of Income Tax, Circle-2, Gurgaon, under section 143(3) of the Income-tax Act, 1961, due to the assessee's failure to provide necessary confirmations and documents regarding the outstanding balances of sundry creditors. The Tribunal heard the arguments of the Departmental Representative, as the assessee did not appear or provide a representative despite multiple notices.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 108632 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 11 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-05-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 10-04-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 03-06-2019
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Unexplained cash credit
• Section: 68; 143(3)

Judgement Text

1 ITA No. 5166/Del/2019 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F”: NEW DELHI BEFORE SHRI G.S. PANNU, HON’BLE PRESIDENT AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITA No. 5166 /DEL/2019 Assessment Year: 2014-15 M/s Yatra Corporate Hotel Solutions Pvt. Ltd. (Formerly known as Intech Hotel Solutions Pvt. Ltd.), 6 th Floor, Tower B, Unitech Cyber Park, Sector-39, Gurgaon-122001 PAN- AABCI9972C Vs ACIT, Circle 2(1), Gurgaon. APPELLANT RESPONDENT Assessee represented by None Department represented by Sh. Akhilesh Gupta, Sr. DR Date of hearing 11.04.2023 Date of pronouncement 04.05.2023 O R D E R PER ANUBHAV SHARMA, JM: The assessee has come in appeal against the order dated 08.03.2019 passed by the Commissioner of Income Tax (Appeals)-1, Gurgaon (hereinafter referred as “learned First Appellate Authority” or in short “FAA”) in Appeal no. 674/16-17, for the assessment year 2014-15, arising out of assessment order dated 02.12.2016 u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred as the “Act”), passed 2 ITA No. 5166/Del/2019 by the Dy. Commissioner of Income Tax, Circle-2, Gurgaon (hereinafter referred in short as “Ld. AO”). 2. Heard and perused the record. 3. None has appeared for the assessee inspite of notices being issued repeatedly. The report received on notices mentions that assessee has left the address given. Accordingly arguments of learned DR were heard, who supported the findings of tax authorities below. 4. The assessee has raised following grounds: “1. The learned Commissioner of Income Tax (Appeals) - 1, Gurgaon [CIT(A)] erred in confirming the addition of Rs.25,39,740 made by the Assessing Officer u/s,68 in respect of following outstanding balances of sundry creditors as on the last of the financial year by holding that there is no real credit balance of the said creditors:- S. No. Name of the Creditor Amount (Rs.) i. Chitra Pat Audio Visual 5,80,400 ii. D.V. Travels Guru Pvt. Ltd. 19,59,304 TOTAL: 25,39,704 Your appellant submits that under the facts and in the circumstances of the appellant’s case the learned CIT(A) ought to have deleted the addition made by the Assessing Officer, 2. The learned CIT(A) erred in confirming the action of the Assessing Officer treating the genuine credit balances outstanding of the sundry creditors Rs.25,39,704 as on the last day of the financial year as unexplained cash credits u/s.68. 3. Your appellant submits that under the facts and in the circumstances of the appellant’s case the learned CIT(A) ought to have held that addition of Rs.25,39,704 u/s.68 is wrongly made and the same ought to be deleted. 3 ITA No. 5166/Del/2019 4. Your appellant craves leaves to add to, alter, amend or vary all or any of the aforesaid ground of appeal as they/their representative may deem fit.” 5. It can be appreciated that in para 4.1 of CIT(A)’s order he makes following relevant observations; “4.1 Brief facts as recorded in the assessment order are as under: “During the year under consideration, it was noticed that the assessee company had trade payables/creditors amounting to Rs. 25,39,704/-. To scrutinize the genuineness of the creditors outstanding balance the assessee vides notice 27/07/2016 was asked to furnish the ledger confirmation of the creditors. Despite various reminders assessee failed to submit the confirmation and as such show cause notice dated 15/11/2016 was issued to the assessee to furnish the ledger confirmation of the creditors having the outstanding balance of more than Rs. 5,00,000/-. In this regard the assessee vide its submission dated 02/11/2016furnished the details of the creditors which are as under Sr. No. Vendor PAN Address Amount(Rs.) 1. Chitra Pat Audio Visual AANPS2262F H-301 New Rajender Nagar, New Delhi. 5,80,400 2. DV Travels Guru AACCD1707E 802 Eureka Towers, mindspace Mumbai 19,59,304 Total 25,39,704 The reply of the assessee has been considered but it is devoid of any merits. The assessee, despite of various opportunities, has not been able to furnish even the basic documents to support its claim. Merely furnishing the details of the creditors does not entitle the assessee to justify its claim. Onus lies 4 ITA No. 5166/Del/2019 upon assessee to discharge its obligation regarding the source of any sum which has been found credited to its books of account. A credit in the assessee’s books of account, signifying a receipt, or a liability, has to be satisfactorily explained, to keep the provision of section 68 at bay.” 6. The order of learned CIT(Appeals) shows that due to failure of assessee to provide confirmation from Chitra Pat Audio Visual and for taking contradictory pleas/reply with regard to D.V. Travels Guru Pvt. Ltd., the additions have been sustained. Apparently there is no other material on record to indicate that the findings were factually incorrect. The Bench is of the considered view that grounds have no substance. Appeal is dismissed. Order pronounced in open court on 04.05.2023. Sd/- Sd/- (G.S. PANNU ) (ANUBHAV SHARMA) PRESIDENT JUDICIAL MEMBER *MP* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI