NAMAH SHIVAYA TRADING PVT LTD,DELHI V. ITO, DELHI

ITA 4573/DEL/2025

AI Insights

The case involves M/s Namah Shivaya Trading Pvt. Ltd., which appealed against the order of the National Faceless Appeal Centre (NFAC) Delhi, which had confirmed an addition of Rs. 45 lakhs under section 68 of the Income-tax Act, 1961. This addition was based on share application premium money received from three companies. The appellant contested that these companies were not treated as accommodation entry providers in their respective assessments under section 153C of the Act, following a search action on the S.K. Jain group. The Tribunal agreed with the appellant, leading to the deletion of the addition.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 771980 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2010-2011
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit
• Section: 147; 143(3); 68

Judgement Text

"1 ITA No. 4573/Del/2025 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘SMC’ NEW DELHI BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER ITA No. 4573/Del/2025 Assessment Year: 2010-11 M/s Namah Shivaya Trading Pvt. Ltd., 206, Hans Bhawan, 1 Bhadurshah Zafar Marg, New Delhi-110002. PAN: AABCN 7434 R Vs Income Tax Officer, Ward-17(3), New Delhi. APPELLANT RESPONDENT Assessee represented by Shri Suresh Gupta, CA Department represented by Shri Manoj Kumar, Sr. DR Date of hearing 28.08.2025 Date of pronouncement 28.08.2025 O R D E R PER SATBEER SINGH GODARA, J.M: This assessee’s appeal for assessment year 2010-11 arises against National Faceless Appeal Centre (NFAC) Delhi’s’ order dated 21.07.2025 [DIN & Order No. ITBA/NFAC/S/250/2025-26/1078715193(1)] in proceedings u/s 147 r.w.s. 143(3) of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’. Heard both the parties. Case file perused. 2. Suffice to say, it emerges during the course of hearing that both the learned lower authorities have made section 68 unexplained cash credit addition in the assessee’s hands to the tune of Rs. 45 lakhs allegedly received from M/s Sunny Cast & Forge Ltd., Attractive Finlease Pvt. Ltd. and Shalini Holdings Ltd. involving share application premium money of Rs. 25 lakhs, Rs. 10 lakhs each, respectively. Printed from counselvise.com 2 ITA No. 4573/Del/2025 3. There is no dispute between the parties that learned lower authorities have proceeded against the assessee in furtherance to a search action on M/s S.K. Jain group. The assessee has invited the tribunal’s attention to the respective assessment orders passed u/s 153C of the Act, all dated 28.03.2013 in the above three entities’ cases not assessing them either u/s 68 or 69, as the case may be, which leads to the conclusion that they could not have been held as accommodation entry providers and the assessee being beneficiary thereof; as the case may be, for the purpose of making the impugned addition. The same is directed to be deleted, therefore. 4. This assessee’s appeal ITA No. 4573/Del/2025 is allowed. Order pronounced in open court on 28.08.2025. Sd/- (SATBEER SINGH GODARA) JUDICIAL MEMBER Dated: 28.08.2025. *MP* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "