LVR PROMOTERS,BENGALURU vs. ITO, W - 6(2)(5), BENGALURU

ITA 205/BANG/2026Status: DisposedITAT Bangalore17 September 2026AY 2016-201710 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the cash payments were made before the assessee firm came into existence and that the liability was merely taken over through a book entry. The Tribunal found no evidence that the assessee itself made the cash investment.

What were the facts?

The assessee, a property development firm, purchased land and claimed a significant portion of the payment was made in cash by a predecessor firm, M/s Veegee Developers. The Assessing Officer (AO) treated the cash payment as unexplained investment in the hands of the assessee.

What were the issues?

Whether cash payments made by a predecessor firm before the assessee's incorporation can be treated as unexplained investment in the hands of the assessee under Section 69 of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 69,Section 115BBE

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, BANGALORE BENCHES, BANGALORE

Before: SHRI WASEEM AHMED & SHRI KESHAV DUBEY

For Respondent: MD JCIT

PER SHRI WASEEM AHMED, ACCOUNTANT MEMBER:

This appeal is filed by the Assessee against the order of Ld. CIT(A), NFAC, Delhi vide DIN: ITBA/NFAC/S/250/2025-26/1080025120(1) dated 26-Aug-2025 for the Assessment Year 2016-2017. ITA 205/BANG/2026 LVR PROMOTERS

2.

At the outset, we note that the assessee's appeal is delayed by 84 d

The order continues below.

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