INCH AUTOMATION PRIVATE LIMITED,GURGAON HARYANA vs. THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 2(1) GURGAON, HARYANA (NOW ACIT CIRCLE 1(1), GURGAON HARYANA

This assessee’s appeal for assessment year 2016-17, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2024-25/1071037305(1), dated 09.12.2024 involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Heard both the parties. Case file perused.

It emerges during the course of hearing that both the learned lower authorities herein have treated the assessee’s share capital/premium amount of Rs.3,35,94,000/- as unexplained cash credits under section 68 of the Act in assessment order dated 24.12.2018 and upheld in the lower appellate discussion.

Learned counsel submits in this factual backdrop that the assessee has filed its additional evidence application dated 4th August, 2025 under Rule 29 of the Income Tax (Appellate Tribunal) Rules, 1963 seeking to place on record all the relevant details of the investor/subscriber herein, namely, Mr. Li for the entire amount of Rs.3,35,94,000/-. The assessee’s case accordingly is that it was on account of various communication gaps etc. that it could not plead and prove the foregoing facts before both the learned lower authorities.

The Revenue’s on the other hand could hardly dispute that the assessee’s above additional evidence goes to the root of the matter since seeking to place on record the entire details of its investor Mr. Li. 5. Faced with this situation and in the larger interest of justice, we deem it appropriate to restore the assessee’s instant additional