Petunia Infotech P.Ltd, New Delhi V. ITO, Ward-19(4), New Delhi

ITA 6004/DEL/2019

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 1091 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-10-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 13-07-2022
• Assessment Year: 2011-2012
• Appeal Filed On: 11-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit
• Section: 147; 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘SMC’ NEW DELHI BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA No.6004/Del/2019 Assessment Year: 2011-12 M/s. Petunia Infotech Pvt. Ltd., 26, DDA Flats, Shivalik Road, Panchsheel Park, New Delhi Vs. ITO, Ward-19(4), New Delhi PAN :AADCP9161B (Appellant) (Respondent) ORDER This is an appeal by the assessee against order dated 22.05.2019 of learned Commissioner of Income Tax (Appeals)-7, New Delhi, pertaining to assessment year 2011-12. 2. The dispute in the present appeal is confined to addition of an amount of Rs.3,00,000/- under section 68 of the Income-tax Act, 1961 (for short ‘the Act’). 3. Briefly the facts are, the assessee is a resident corporate entity. For the assessment year under dispute, the assessee filed Appellant by Sh. Anuj Jain, CA Respondent by Sh. Om Parkash, Sr. DR Date of hearing 14.07.2022 Date of pronouncement 12.10.2022 ITA No.6004/Del/2019 AY: 2011-12 2 | Page its return of income on 31.08.2011 declaring total income of Rs.26,430/-. Subsequently, the Assessing Officer received information from the Investigation Wing indicating that another company, namely, M/s. Delhi Spot Bullion Trading Co. (P) Ltd. has received huge unsecured loan from various entities during the financial year 2010-11. He found that the assessee is one of the lenders having advanced loan of Rs.3,26,334/-. It was further observed that the loan transactions are entirely bogus and unaccounted money of M/s. Delhi Spot Bullion Trading Co. (P) Ltd. was routed through various entities as loan. Based on such information, the Assessing Officer reopened the assessment under section 147 of the Act. Ultimately, he completed the assessment by adding back an amount of Rs.3 lakhs to the income of the assessee by treating it as unexplained cash credit under section 68 of the Act. Learned Commissioner (Appeals) sustained the addition. 4. I have considered rival submissions and perused the materials on record. Undisputedly, the Assessing Officer has made the disputed addition under section 68 of the Act. A reading of section 68 of the Act would reveal that if any amount is credited to the books of account of a particular assessee, the ITA No.6004/Del/2019 AY: 2011-12 3 | Page source of which cannot be explained, it can be treated as unexplained cash credit. However, in the facts of the present appeal, the amount of Rs.3 lakhs is not a credit entry in the books of account of the assessee. On the contrary, the allegation is, the assessee has advanced loan of Rs.3 lakhs to another entity. Thus, it is a simple case of loan given and not loan taken. That being the factual position emerging on record, the amount cannot be added to the income of the assessee under section 68 of the Act. 5. In view of the aforesaid, I delete the addition. 6. In the result, the appeal is allowed. Order pronounced in the open court on 12 th October, 2022 Sd/- (SAKTIJIT DEY) JUDICIAL MEMBER Dated: 12 th October, 2022. RK/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi