S K DEVELOPERS,CHENNAI vs. THE ASSISTANT COMMISSIONER OF INCOME TAX,CENTRAL CIRCLE-2, RAJAHMUNDRY

ITA 31/VIZ/2025Status: DisposedITAT Visakhapatnam09 September 2026AY 2017-1812 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the initiation of proceedings under Section 153C was valid as incriminating material was found. However, additions for interest paid in cash could not be sustained solely on third-party evidence without corroboration, especially when denied by the assessee.

What were the facts?

During a search operation, incriminating documents related to loans and interest payments were found from a third party. The assessee firm denied receiving cash loans and paying interest, but the Assessing Officer made additions based on the third-party evidence.

What were the issues?

Whether the proceedings under Section 153C were validly initiated and whether additions for interest paid in cash can be made based solely on third-party evidence without corroboration.

Which sections of the Income-tax Act were involved?

Section 132,Section 133A,Section 153C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM

Before: SHRI VIJAY PAL RAO, HON’BLE & SHRI MANJUNATHA G, HON’BLE

PER MANJUNATHA G, AM: This appeal is filed by the Assessee against the order of Learned Commissioner of Income Tax (Appeals)-3, Visakhapatnam vide DIN: ITBA/APL/S/250/2024-25/1070692893(1) dated 27-Nov-2024 for the Assessment Year 2017-18. ITA 31/VIZ/2025 S K DEVELOPERS

2.

The Assessee has raised the following grounds of appeal:

“1. Th

The order continues below.

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