KRISHNA INFRATEC,GAUTAM BUDH NAGAR V. ACIT, CIRCLE 2(1)(1), GHAZIABAD

ITA 3267/DEL/2025

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Krishna Infratech, a partnership firm, filed an appeal against the order of the Commissioner of Income Tax (Appeals) which sustained an addition of Rs. 20 lakhs to the firm's income, treating it as unexplained credit. The addition was initially made by the Assessing Officer during a limited scrutiny assessment for the Assessment Year 2018-19, under sections 143 and 143(2) of the Income Tax Act, 1961. The firm had declared an income of Rs. 2,43,43,780 in its return. The addition pertained to an unsecured loan received from M/s. Ridhi Enterprises, which was allegedly squared up during the same year. The Tribunal, after considering the evidence provided by the assessee, including the lender's income tax return and transaction details, decided to delete the addition, emphasizing the lack of independent inquiry by the Assessing Officer and the sufficiency of the documents provided.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 775850 (ITAT-DELHI)
• Duration Of Justice: 3 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2018-2019
• Appeal Filed On: 16-05-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHANKAR LAL VERMA
• Assessee Lawyers: ABHISHEK JAIN
• Keywords: Additional evidence; Unexplained cash credit

Judgement Text

"1 ITA NO. 3267/Del/2025 Krishna Infratech Vs. ACIT IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “E” BENCH BEFORE SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER AND SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER I.T.A. No.3267/DEL/2025 (A.Y 2018-19) Krishna Infratec, Sadipur Road Gulaothi, Bulandshahr Uttar Pradesh Gautam Budh Nagar PAN No. AAMFK5943N Vs. ACIT Circle – 2 (1) (1) Ghaziabad Appellant Respondent Assessee by Sh. Abhishek Jain, CA Ms. Sunidhi Sharma, Advocate Revenue by Sh. Shankar Lal Verma, Sr. DR Date of Hearing 08/09/2025 Date of Pronouncement 12/09/2025 ORDER PER YOGESH KUMAR, U.S. JM: The present appeal is filed by the Assessee against the order of Ld. Commissioner of Income Tax (Appeals/ National Faceless Appeal Centre (‘Ld. CIT(A)/NFAC’ for short), New Delhi dated 23.04.2025 for the Assessment Year 2018-19 arising out of the assessment order dated 19.03.2021 pertaining to A.Y. 2018-19. 2. The brief facts of the care are that being a partnership firm filed return of income declaring income of Rs.2,43,43,780/- . The case was selected for limited scrutiny in assessment year came to passed u/s. 143 143(2) of the Income Tax Act, 1961 (“Act” for short). By making an Printed from counselvise.com 2 ITA NO. 3267/Del/2025 Krishna Infratech Vs. ACIT addition of Rs.20 lacs by treating unsecured loan as unexplained credit u/s. 68of the Act vide assessment order dated 19.03.2021. As against the assessment order dated 19.03.2021 there was preferred an appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 23.04.2025 partly allowed the appeal wherein sustained the addition of Rs.20 lacs received as unsecured loan from M/s. Ridhi Enterprises. Aggrieved by the order of the CIT(A) dated 23.04.2025, the assessee preferred an appeal before us. 3. The ld. Counsel for the assessee submitted that the CIT(A) committed error in sustaining the addition of Rs.20 lacs with respect to the loan received from M/s. Ridhi Enterprises which has been squared up during the year itself. Thus, it is submitted that the Ld. AO committed error in making the said addition and the CIT(A) also confirmed the said addition which is illegal and deserves to be deleted. 4. Per contra the Ld. Departmental Representative submitted that the assessee has not extend the nature and source of the credit in account of the assessee and the assessee has not furnished ITR of the lender to prove the genuinenity and identity of the transaction/ party. Thus submitted that the CIT(A) order request no interference at the hands of the Tribunal thus sought for the dismissal of the appeal. Printed from counselvise.com 3 ITA NO. 3267/Del/2025 Krishna Infratech Vs. ACIT 5. We have heard both the parties and perused the material available on record. The only reason for making the addition of Rs. 20 lacs received M/s. Ridhi Enterprises is that the assessee has not furnished the income tax return of M/s. Ridhi Sharma Enterprises. It is observed that the AO has made any independent enquiry by issuing notice u/s. 133 (6) of the Act to the lender. The assessee has also provided the ledger, PAN, bank statement and other details of the lender in support of proving transaction and admittedly the transaction was made in banking channel. In view of the facts and circumstances and the Ld. CIT(A) also have deleted the addition. Further the assessee has also filed produce income tax return of Pushkar Pratap Singh and also statement of account. 6. Considering the above facts and circumstances and also looking into the merits of the case we deem it fit to admit the additional evidence and delete the sustained addition of Rs.20 lacs. 7. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 12 September, 2025. Sd/- Sd/- (S. RIFAUR RAHMAN) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:-12.09.2025 NEHA, Sr.P.S* Printed from counselvise.com "