Prestigious enterprises Pvt Ltd, New Delhi V. ACIT CC-18, New Delhi

ITA 9271/DEL/2019

AI Insights

The case involves Prestigious Enterprises Pvt. Ltd., which appealed against the order of the Commissioner of Income Tax (Appeals)-31, New Delhi, confirming an addition of Rs. 50,00,000 as unexplained cash credits. The addition was initially made by the Assessing Officer (AO) during the assessment proceedings under section 143(3) of the Income Tax Act, 1961. The Tribunal had earlier set aside the matter to the AO, who then completed the assessment, allowing some relief but maintaining the addition of Rs. 50,00,000. The CIT(A) dismissed the appeal of the assessee, leading to the current appeal before the Tribunal. The Tribunal, after hearing the Departmental Representative and reviewing the materials on record, dismissed the appeal, agreeing with the lower authorities that the assessee did not substantiate the claims regarding the cash credits.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 130847 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 10 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-10-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 09-10-2023
• Assessment Year: 2007-2008
• Appeal Filed On: 01-12-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Principle of natural justice
• Section: 68; 143(3)

Judgement Text

Page 1 of 6 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘F’: NEW DELHI BEFORE, SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER ITA No.9271/Del/2019 (ASSESSMENT YEAR-2007-08) Prestigious Enterprises Pvt. Ltd. (Formerly known as Aeren R. Enterprises Pvt. Ltd. & A.R. Developers merged with Aeren R. Enterprises Pvt. Ltd.) 618, 6 th Floor, 6, Devika Tower, Nehru Place New Delhi-110 019 PAN-AADCS 7613K Vs. ACIT, Central Circle-18 New Delhi (Appellant) (Respondent) Appellant by None Respondent by Sh. Vivek Vardhan, Sr. DR Date of Hearing 10/10/2023 Date of Pronouncement 12/10/2023 ORDER PER YOGESH KUMAR U.S., JM: This appeal by Assessee is filed against the order of Learned Commissioner of Income Tax (Appeals)-31, New Delhi [“Ld. CIT(A)”, for short], dated 30/09/2019 for Assessment Year 2007-08. 2. Grounds taken in this appeal are as under: ITA No.9271/Del/2019 Prestigious Enterprises Pvt. Ltd. vs. ACIT Page 2 of 6 “1. The Hon’ble Commissioner of Income Tax (A)-31, New Delhi, has not followed the law of natural justice while confirming additions and disallowances by the Ld. AO. 2. That the impugned Appeal Order is bad in law, illegal, and in violation of rudimentary principal of contemporary jurisprudence. 3. That the Hon’ble Commissioner of Income Tax (Appeal)-31, New Delhi, has erred in law and on facts by confirming the addition of Rs.50,00,000/-. 4. That the Appellant craves leave to add/alter any/all grounds of appeal before or at the time of hearing of the Appeal.” 3. None appeared on behalf of the assessee. The power of attorney executed by the assessee has been filed but neither the assessee nor the representative of the assessee is present and no adjournment application has been filed. Considering the above facts and circumstances, we are compelled to decide the appeal after hearing the Ld. DR. 4. The brief facts of the case are that assessee company filed its return of income declaring loss at Rs.53,05,870/-. The assessment u/s 143(3) was completed on 31.12.2009 by making addition of Rs.1,00,00,000/- on account of compensation received on breach of contract in respect of purchase of immovable property and Rs.50,00,000/- on account of unexplained cash credits. The matter travelled to this Tribunal and the Tribunal vide order dated ITA No.9271/Del/2019 Prestigious Enterprises Pvt. Ltd. vs. ACIT Page 3 of 6 29.11.2017, set aside the matter to the file of the AO and accordingly, the AO completed the assessment u/s 254/143(3) dated 26/03/2018 wherein allowed the relief of Rs.1,00,00,000/- and made addition of Rs.50,00,000/- u/s 68 of the Act. 5. Aggrieved by the assessment order dated 26/03/2018, the assessee preferred the present appeal before the Ld. CIT(A) and the Ld. CIT(A) vide order dated 30/09/2019, dismissed the appeal filed by the assessee by confirming the addition of Rs.50,00,000/- made u/s 60 of the Act. As against the order of the Ld. CIT(A) dated 30/09/2019, the assessee preferred the present appeal on the ground mentioned above. 6. The Ld. DR vehemently submitted that the addition of Rs.50,00,000/- made on account of undisclosed cash credit has not been specifically challenged by the assessee before the Ld. CIT(A), the assessee contested that the said addition claimed to have been made arbitrarily and illegally, but the assessee has produced only confirmation of Treatwell Investment Leasing Pvt. Ltd. (merged with BSBK Engineers Pvt. Ltd.) and the copy of acknowledgment for filing of return for AY 2007-08 but not provided any evidence to ITA No.9271/Del/2019 Prestigious Enterprises Pvt. Ltd. vs. ACIT Page 4 of 6 prove the identity and creditworthiness of Creditor and genuineness of the transaction. It is well settled position that the identity and credit worthiness of the creditor and the genuineness of the transaction have to be proved with cogent evidences, which has not been done by the assessee, therefore, submitted that the present appeal is liable to be dismissed. 7. We have heard the Ld. DR and perused the materials available on record. During the second round of the assessment proceedings after remand by the Tribunal, the assessee has not filed the required details as called for to explain the credits of Rs.50,00,000/-, but the assessee has filed a confirmation, thereafter, which does not contain the date and also not contain the seals/stamp of the company. The said confirmation does not even disclose regarding the mode of advance whether by cheque or cash. Though the bank statement produced by the assessee reflects the depositing of 50,00,000/-, but does not indicates as to whom from the said amount has been received. The assessee has not produced any document before the Ld. CIT(A) or before us to prove the identity to the creditworthiness of the creditor and the genuineness ITA No.9271/Del/2019 Prestigious Enterprises Pvt. Ltd. vs. ACIT Page 5 of 6 of the transaction. The Ld. CIT(A) has also observed that ‘the assessee has failed to explain cash credit of Rs.50,00,000/- within the meaning of section 68 of the Act’. Therefore, in our considered opinion, the lower authorities have committed no error and we find no infirmity in the order of the CIT(A). Accordingly, we find no merit in the grounds of the appeal of the assessee and the same is dismissed. 8. In the result, the appeal filed by the assessee is dismissed. Order pronounced in open Court on 12 th October, 2023. Sd/- Sd/- (SHAMIM YAHYA) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 12/10/2023 Pk/R.N Sr.ps Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI ITA No.9271/Del/2019 Prestigious Enterprises Pvt. Ltd. vs. ACIT Page 6 of 6