DCIT, CIRCLE- 2(2), NEW DELHI vs. ANTIQUE TEXFEB PVT. LTD., NEW DELHI

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ITA 4760/DEL/2018Status: DisposedITAT Delhi08 August 2022AY 2014-154 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal, relying on a CBDT circular, found no reason to interfere with the CIT(A)'s decision. The CIT(A) had allowed the set off of losses, which the Tribunal upheld.

What were the facts?

During scrutiny assessment, the assessee accepted fresh unsecured loans totaling Rs. 5.40 crores. The assessee's CA surrendered this amount for taxation as unexplained cash credit under Section 68. The AO made the addition and denied set off of losses considering Section 115BBE.

What were the issues?

Whether losses can be set off against income treated as unexplained cash credit under Section 68, especially when Section 115BBE is invoked.

Which sections of the Income-tax Act were involved?

Section 68,Section 115BBE

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘A’, NEW DELHI

Before: SH. N. K. BILLAIYA & SH. ANUBHAV SHARMA

Hearing: 08/08/2022Pronounced: 08/08/2022

Appellant None Respondent Sh. Kanav Bali, Sr. DR Date of hearing: 08/08/2022 Date of Pronouncement: 08/08/2022 ORDER PER N.K. BILLAIYA, AM:

This appeal by the revenue is preferred against the order of the CIT(A)-1, New Delhi dated 09.04.2018 pertaining to A.Y.2014- 15.

2.

The grievance of the revenue read as under :-

3.

None appeared on behalf of the assessee inspite notice. We decided to proceed exparte. Having heard the DR we have carefully perused the orders of the authorities below.

4.

Briefly stated the facts of the case are that during the course of the scrutiny assessment proceedings the AO noticed that the assessee has accepted fresh unsecured loans from various parties totalling to Rs. 5.40 crores. The AO observed that this issue was discussed at length with the CA of the assessee who surrendered the amount of Rs. 5.40 crores for taxation as unexplained cash credit u/s. 68 of the Act. The AO accordingly made the addition of Rs. 5.40 crores and computed the income of the assessee as under :-

5.

It can be seen from the above that the said loss was denied by the AO keeping in view provision of section 115 BBE of the Act.

6.

When the matter was agitated before the CIT(A) the CIT(A) was convinced with the claim of set of and allowed the appeal.

7.

The following circular of the CBDT explains the whole quarrel:-

8.

In the light of the specific clarification by the CBDT (supra) we do not find any reason to interfere with the findings of the CIT(A). The Appeal filed by the revenue is accordingly dismissed.

9.

Decision announced in the open court on 08.08.2012.

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