STELLAR KELVIN COLD CHAIN LOGISTICS AND DISTRIBUTION RPIVATE LIMITED ,MUMBAI V. DEPUTY COMMISSIONER OF INCOME TAX -5(2)(1), MUMBAI

ITA 4495/MUM/2024

AI Insights

The case involves Stellar Kelvin Cold Chain Logistics and Distribution Private Limited, which appealed against the order of the National Faceless Assessment Centre (NFAC), Delhi, confirming the addition of Rs. 6,01,10,000 as unexplained cash credit under section 68 of the Income Tax Act for the assessment year 2018-19. The primary contention of the assessee was that the loans were taken in the financial year 2016-17, relevant to the assessment year 2017-18, and not in the year under consideration. Both the Assessing Officer and the Commissioner of Income Tax (Appeals) rejected this contention, leading to the appeal before the Tribunal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 472741 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BHANGEPATIL PUSHKARAJ RAMESH; DR
• Assessee Lawyers: BHAVESH MEHTA; AR
• Keywords: Unexplained cash credit
• Section: 68

Judgement Text

" | आयकर अपीलीय अिधकरण \fा यपीठ, मुंबई | IN THE INCOME TAX APPELLATE TRIBUNAL “G” BENCH, MUMBAI BEFORE SHRI SAKTIJIT DEY, HON’BLE VICE PRESIDENT & SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER I.T.A. No. 4495/Mum/2024 Assessment Year: 2018-19 Stellar Kelvin Cold Chain Logistics and Distribution Private Limited 5th Floor, E Wing Block A, Trade Link Senapati Bapat Marg Kamla Mill Compound Lower Parel Mumbai - 400013 [PAN: AAFCM3392P] Vs National e-Assessment Centre, Delhi/Deputy Commissioner of Income tax – 5(2)(1), Mumbai अपीला थ\u0016/ (Appellant) \u0017\u0018 यथ\u0016/ (Respondent) Assessee by : Shri Bhavesh Mehta, A/R Revenue by : Shri Bhangepatil Pushkaraj Ramesh, Sr. D/R सुनवाई की तारीख/Date of Hearing : 12/02/2025 घोषणा की तारीख /Date of Pronouncement: 19/02/2025 आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM: This appeal by the assessee is preferred against the order dated 04/07/2024 by NFAC, Delhi pertaining to AY 2018-19. 2. The sum and substance of the grievance of the assessee is that the ld. CIT(A) erred in confirming the addition of Rs. 6,01,10,000/- made u/s 68 of the Act as unexplained cash credit. 3. Representatives were heard at length. Case records carefully perused and the relevant documentary evidence brought on record, duly considered in the light of Rule 18(6) of the ITAT Rules, 1963. I.T.A. No. 4495/Mum/2024 2 4. During the course of scrutiny assessment proceedings, on perusal of 3CD report, the AO noticed that the assessee has taken loans from the following entities:- 5. The assessee was asked to substantiate the identity, creditworthiness and genuineness of the loans. Vide submissions dated 18/03/20211, the assessee explained that the aforementioned loans were accepted by the assessee in FY 2016-17 relevant to AY 2017-18 and not in the year consideration. Hence no addition is called for. This contention of the assessee was rubbished by the AO who made the addition of Rs.6,01,10,000/- u/s 68 of the Act. 6. The assessee agitated the matter before the ld. CIT(A) and reiterated this contention. The ld. CIT(A) again rubbished the contention of the assessee. 7. We have carefully perused the copies of the ledger account of all the loan creditors mentioned hereinabove. We find that all the loans were taken by the assessee in FY 2016-17 relevant to AY 2017-18. The copies of the ledger accounts are exhibited in the paper book which, in I.T.A. No. 4495/Mum/2024 3 our considered opinion, the lower authorities did not care to look into. Since the impugned loans were not taken in the year under consideration, provisions of Section 68 of the Act are not applicable. The AO is directed to delete the same. 8. Levy of interest is consequential. The AO is directed to levy interest as per the relevant provisions of law. 9. In the result, appeal of the assessee is allowed. Order pronounced in the Court on 19th February, 2025 at Mumbai. Sd/- Sd/- (SAKTIJIT DEY) (NARENDRA KUMAR BILLAIYA) VICE-PRESIDENT ACCOUNTANT MEMBER Mumbai, Dated 19/02/2025 *SC SrPs *SC SrPs *SC SrPs *SC SrPs आदेश की \u0014ितिलिप अ\u0019ेिषत /Copy of the Order forwarded to : 1. अपीलाथ\u001b / The Appellant 2. \u0014\u001cथ\u001b / The Respondent 3. संबंिधत आयकर आयु! / Concerned Pr. CIT 4. आयकर आयु! ) अपील ( / The CIT(A)- 5. िवभागीय \u0014ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड% फाई/ Guard file. आदेशानुसार/ BY ORDER, TRUE COPY Assistant Registrar आयकर अपीलीय अिधकरण ITAT, Mumbai "