MALLARD SECURITIES PRIVATE LIMITED,FARIDABAD V. ITO,WARD-16(2), NEW DELHI

ITA 837/DEL/2023

AI Insights

Mallard Securities Pvt. Ltd. appealed against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, which had dismissed their earlier appeal against the assessment order. The assessment order had made significant additions to the assessee's income, citing unexplained cash credits and unexplained investments. The Tribunal noted that the assessee did not appear during the hearings and failed to provide any evidence or documents to support their claims, leading to the dismissal of their appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772425 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-08-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Assessment Year: 2012-2013
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RICHA GAHARWAR
• Keywords: Unexplained investment
• Section: 68

Judgement Text

"1 ITA No. 837/Del/2023 Mallard Securities Pvt. Ltd. Vs. ITO IN THE INCOME TAX APPELLATE TRIBUNAL DELHI (DELHI BENCH ‘E’ NEW DELHI) BEFORE SHRI YOGESH KUMAR U.S., JUDICIAL MEMBER AND SHRI AVDHESH KUMAR MISHRA, ACCOUNTANT MEMBER ITA No. 837/Del/2023 (A.Y 2012-13) Mallard Securities Private Limited 2055-56, 3rd Floor, Gali No. 6, Chunna Mandi, Pahar Gunj, New Delhi PAN: AAHCM6940R Vs. ITO Ward-16(2) C. R. Building, New Delhi Appellant Respondent Assessee by None Revenue by Ms. Richa Gaharwar, CIT DR Date of Hearing 25/08/2025 Date of Pronouncement 27/08/2025 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 31/01/2023 for the Assessment Year 2012-13. 2. Brief facts of the case are that, an assessment order came to be passed u/s 143(3)/147 of the Income Tax Act, 1961 ('Act' for short) on 20/12/2018 by making an addition of Rs. 300,03,00,000/- u/s 68 of the Act and addition of Rs. 5,40,05,400/- on account of unexplained investment in the form of expenditure @ 1.8% of the accommodation entry. Printed from counselvise.com 2 ITA No. 837/Del/2023 Mallard Securities Pvt. Ltd. Vs. ITO 3. Aggrieved by the assessment order dated 20/12/2018, the Assessee preferred an Appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 31/01/2023, dismissed the Appeal filed by the Assessee. 4. None appeared for the Assessee even after service of notice. Therefore, we deem it fit to decide the present Appeal on hearing the Ld. Departmental Representative. 5. The Ld. Departmental Representative relying on the orders of the Lower Authorities sought for dismissal of the Appeal filed by the Assessee. 6. Heard and perused. During the assessment proceedings, the A.O. issued notice to the Assessee to explain the nature and source of sums credited to its books of account by various Companies. Since the Assessee failed to explain the nature and source of sums credited to its books of account aggregating to Rs. 3,03,00,000/-, the same has been treated as unexplained as per Section 68 of the Act and added to the income of the Assessee. Further the Ld. A.O. held that the Assessee has incurred unexplained investment in the form of expenditure @ 1.8% of the accommodation entry which amount to Rs. 5,40,05,400/- and added the same to the income the Assessee. Printed from counselvise.com 3 ITA No. 837/Del/2023 Mallard Securities Pvt. Ltd. Vs. ITO 7. During the appellate proceedings, the Ld. CIT(A) has thoroughly dealt with the issues on merits and decided the Grounds of Appeal of the Assessee and dismissed the Appeal on the Ground that the Assessee has not discharged its onus by providing requireddocuments either before the A.O. or before the appellate proceedings in order to prove the identity of the creditor, genuineness of the transaction and capacity of creditors by means available and to prove the transaction. As the onus cast upon the Assessee has not been discharged, the Ld. CIT(A) confirmed the additions made by the A.O. In the absence of any contrary materials to contradict the findings of the Lower Authorities brought on record by the Assessee, we find no reason to interfere with the order of the Ld. CIT(A). Finding no merits in the Grounds of Appeal of the Assessee, the appeal of the Assessee is hereby dismissed. Order pronounced in the open court on 27th August, 2025 Sd/- Sd/- (AVDHESH KUMAR MISHRA) (YOGESH KUMAR U.S.) ACCOUNTANT MEMBER JUDICIAL MEMBER Date:- 27 .08.2025 R.N, Sr.P.S* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com 4 ITA No. 837/Del/2023 Mallard Securities Pvt. Ltd. Vs. ITO Printed from counselvise.com "