Capital Infra Projects Pvt Ltd Vs DCIT

Last updated: 29 December 2020

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Quick Summary

This Income Tax Appellate Tribunal case involves Capital Infra Projects Pvt Ltd appealing against additions made by the Assessing Officer. The core issue concerns a loan of Rs 3 crores received in each assessment year from M/s Pabla Leasing and Finance Pvt. Ltd, which the AO treated as an unexplained cash credit under Section 68 of the Income Tax Act. The tribunal heard arguments from both sides and reviewed documentary evidence to reach its decision.

Court :
ITAT New Delhi

Brief :
The above two appeals by the assessee are preferred against the common order of the CIT(A) – 4, Kanpur dated 30.11.2018 pertaining to A.Ys 2013-14 and 2014-15. The underlying facts in issues are identical. Therefore, both these appeals are disposed off by this common order for the sake of convenience and brevity.

Citation :
ITA No. 927 & 928/DEL/2019

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘B’ BENCH,
NEW DELHI [THROUGH VIDEO CONFERENCE]

BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND
SHRI KULDIP SINGH, JUDICIAL MEMBER

ITA No. 927 & 928/DEL/2019
[Assessment Year: 2013-14 & 2014-15]

Capital Infra Projects Pvt Ltd
C/o M/s RRA Tax India
D -28, South Extension
Part – 1, New Delhi.
PAN : AAECC 0093 J
[Appellant]

The Dy. C.I.T
Central Circle
New Delhi.
[Respondent]

Date of Hearing : 02.09.2020
Date of Pronouncement : 04.09.2020
Assessee by : Shri Rajiv Khandelwal, CA
Revenue by : Ms. Nidhi Srivastava, CIT- DR

ORDER

PER N.K. BILLAIYA, ACCOUNTANT MEMBER,

The above two appeals by the assessee are preferred against the common order of the CIT(A) – 4, Kanpur dated 30.11.2018 pertaining to A.Ys 2013-14 and 2014-15. The underlying facts in issues are identical. Therefore, both these appeals are disposed off by this common order for the sake of convenience and brevity.

2. The quarrel is in respect of loan received from M/s Pabla Leasing and Finance Pvt. Ltd amounting to Rs. 3 crores in each A.Y treated by the Assessing Officer as unexplained cash credit and, accordingly, additions have been made under section 68 of the Act.

3. The representatives of both the sides were heard at length, the case records carefully perused and with the assistance of the ld. Counsel, we have considered the documentary evidences brought on record in the form of Paper Book in light of Rule 18(6) of ITAT Rules and have also perused the judicial decisions relied upon by both the sides.

To know more in details find the attachment file

FAQ :

The main issue was the addition made by the Assessing Officer to the company's income, treating a Rs 3 crore loan received from M/s Pabla Leasing and Finance Pvt. Ltd as an unexplained cash credit under Section 68.

Section 68 of the Income Tax Act, which deals with unexplained cash credits, was the relevant section.

The loan in question was Rs 3 crores for each of the assessment years 2013-14 and 2014-15.

The loan was received from M/s Pabla Leasing and Finance Pvt. Ltd.

The Income Tax Appellate Tribunal, Delhi 'B' Bench, New Delhi heard the appeal.