As per Section 68 of the Income Tax Act, any cash credit credited in the books of accounts, can be deemed to be the income of the assessee

INCOME TAX APPELLATE TRIBUNAL
[ DELHI BENCH “F”: NEW DELHI ]
BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER
A N D
SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER
(Through Video Conferencing)
ITA. No. 6334/Del/2017
(Assessment Year: 2014-15)

ACIT,
Central Circle : 18,
New Delhi.

(Appellant)

vs

M/s. PBIL–Apex Consortium
Ltd.,
59/21–A, Ashok Nagar,
New Delhi – 110 018.
PAN: AACCP5108R

(Respondent)

Assessee by : Shri Arvind Jindal, C. A.;
Department by: Shri Govind Singhal, Sr. D. R.;
 

Date of Hearing : 02/08/2021
Date of pronouncement : 02/08/2021
 

O R D E R

This appeal is filed by the ld. ACIT, Central Circle 27, New Delhi, raising the solitary ground of appeal that the ld.CIT (Appeals) has deleted the addition made by the ld. AO of Rs. 9,76,41,006/- under Section 68 of the Income Tax Act, 1961 (the Act) though the assessee has failed to discharge his onus of establishing the genuineness, capacity and identity of the creditors and mere production of the bank statement is not sufficient. The ld. CIT (Appeals) has deleted the above addition as per para No. 7 of his order holding that the above loans are outstanding loans received in the earlier years and therfore no addition u/s 68 can be made as the loans are not credited in the books of the assessee during this F Y.

2. It filed its return of income on 18.09.2014 declaring a loss of Rs.19,92,483/-. The assessment under Section 143(3) of the Act was passed on 18.12.2016 at Rs.9,90,21,040/- wherein the addition of Rs.9,76,41,006/- was made on account of various loans.

3. The ld. CIT (Appeals), on appeal before him held that all these outstanding loans were received in the earlier years except loan of Rs. 6,15,248/- received from PBIL during the year which was accepted by the ld. AO, other loans were shown to have been received prior to 31.03.2006. Therefore, he held that the loans received in earlier years cannot be added in the hands of the assessee under Section 68 of the Act. Therefore, he deleted the addition. Therefore, the ld. AO is in appeal before us.

4.Accordingly, the solitary ground of appeal of the ld. Assessing Officer is dismissed.

5. In the result, appeal of the ld. AO is dismissed.
Order pronounced in the open court on : 02/08/2021.

Please find attached the enclosed file for the full judgement