SPERRY PLAST LTD,NEW DELHI vs. DCIT, NEW DELHI

PDF · subscribers
ITA 4793/DEL/2024Status: DisposedITAT Delhi04 June 2025AY 2017-18Bench: SHRI M. BALAGANESH, ACCOUNTANT MEMBER AND SH. YOGESH KUMAR U.S. (Judicial Member)1 pages

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

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee had provided sufficient documentary evidence for the unsecured loans, including confirmation, ITR, balance sheets, and bank statements of the creditors. The identity and creditworthiness of the creditors were established, and the transactions were conducted through account payee cheques.

What were the facts?

The assessee declared NIL income, but additions were made by the AO for unsecured loans and cash deposits. The CIT(A) deleted a large portion of the additions but sustained an addition of Rs. 2,50,00,000/- relating to two parties.

What were the issues?

Whether the addition sustained by the Ld. CIT(A) on account of unsecured loans from two parties is justified, given the documentary evidence and genuineness of transactions provided by the assessee.

Which sections of the Income-tax Act were involved?

Section 250,Section 143(3),Section 68,Section 115BBE,Section 46A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI

For Appellant: CA Amit Goel, Advocate
Hearing: 06/05/2025Pronounced: 04/06/2025

per the balance sheet of the Pioneer Dealtrade Pvt. Ltd. they had availability of total net worth of Rs. 57,96,69,322/- as on 31/03/2016 and Rs. 57,92,14,703/- as on 31/03/2017.

12.

In the present case, the identity of the loan creditor are established. The creditors are existing income tax Assessee’sand also having bank accounts. Therefore, there cannot be any chance to doubt their identity. Since, the transactions have beentakenplace by account payee cheque, the genuineness of the transaction is also established beyond doubt and the loan has beenpaid back through banking channel apart from proving the creditworthinessof the loan creditor. Considering the above facts and circumstances, we find no reason to sustain the addition, accordingly addition sustained by the Ld. CIT(A) is hereby deleted. Finding merits in Grounds of the Assessee, the same are allowed.

13.

In the result, the Appealof the Assessee is allowed.

Order pronounced in the open court on 04th June, 2025

More judgments on Section 68

All 29,931 judgments and leading authorities on Section 68 →

Recent GST High Court judgments

Search GST case law →