RN CREATIONS PRIVATE LIMITED,MAYUR VIHAR PHASE-I vs. ASSESSING OFFICER WARD 20(3), C R BUILDING

ITA 1199/DEL/2026Status: DisposedITAT Delhi24 June 2026AY 2012-138 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the reopening of assessment by the Assessing Officer was valid, as the AO had bonafide material for forming a prima facie belief that income chargeable to tax had escaped assessment. Ground No. 1 was decided against the assessee. Regarding Ground No. 2, concerning the addition of Rs. 5,50,000 as unexplained cash credits, the Tribunal observed that the assessee had filed confirmation letters from all three lenders (Ess Kay Electrical, Sandeep Kumar, and Light & Power System Bhanu Prasad). The Tribunal found that Ess Kay Electrical and Sandeep Kumar lent amounts through banking channels and had sufficient funds. The assessee had thus proved the genuineness and creditworthiness of the lenders, and the nature and source of the credit were satisfactorily explained. The Tribunal held that the assessee had discharged its onus, and therefore, the addition made by the Assessing Officer was liable to be deleted. The addition of Rs. 5,50,000 was deleted, and the ground raised by the assessee was allowed. The Tribunal did not decide the grounds related to interest under sections 234A and 234B, principles of natural justice, or the order being bad in law, as the primary ground concerning the addition was allowed.

What were the facts?

The assessee, R.N. Creations Private Limited, is in appeal against the order of the CIT(A) for Assessment Year 2012-13. The assessee did not file a return for AY 2012-13. Following a search operation in the case of the Macons Meenu and Yadav Singh Group on 21-11-2014, a notice under section 153C was issued, leading to the assessee filing a Nil return. The assessee had accepted unsecured loans totaling Rs. 6,50,000. The Assessing Officer (AO) initiated reassessment proceedings under section 147, issuing a notice under section 148 on 27-03-2019. The AO disallowed the unsecured loans from Ess Kay Electricals, Light & Power System Bhanu Prasad, and Sandeep Kumar, making an addition of Rs. 6,50,000 under section 68. The CIT(A) confirmed the addition of Rs. 5,50,000 after deleting Rs. 1,00,000, finding the creditworthiness and genuineness of Light and Power System to be proved.

What were the issues?

1. Whether the learned CIT(A) erred in assuming jurisdiction under section 147 of the Income Tax Act, 1961, and framing the assessment under section 148/143(3) without additional information furnished to the assessee. Assessee's Contention: The assessee argued that the CIT(A) erred in assuming jurisdiction under section 147 and that the assessment under section 148/143(3) was flawed as no additional information was provided. The assessee also contended that the AO proceeded on the basis that identity, genuineness, and creditworthiness remained unproved, despite providing confirmation of accounts, ITR copies, and bank statements of lenders. The assessee claimed transactions were through banking channels and that the AO did not provide the 'reason to believe' or adequate opportunity for clarification. Revenue's Contention: The Revenue relied on the findings of the lower authorities.

Which sections of the Income-tax Act were involved?

Section 147,Section 153C,Section 139,Section 148,Section 142(2),Section 68,Section 143(3),Section 234A,Section 234B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “G”, DELHI

Before: SH. SUDHIR KUMARS & SH. NAVEEN CHANDRA

Hearing: 04/06/2026Pronounced: 24/06/2026

PER SUDHIR KUMAR, JUDICIAL MEMBER:

This appeal by the assessee is directed against the order of the Commissioner of Income Tax, Appeals Addl/JCIT(A)-9 Mumbai [hereinafter referred to as “Ld. CIT(A))”] vide order dated 11-12-2025 pertaining to A.Y. 2012-13 arising out the assessment order dated 29-12-2019 passed under section 147

of the Income -tax Act 1961, (in short “the Act”).

2.

The brief facts of the case are that R.N. Creation Ltd. is a private limited company incorporated on 29 December, 2006 at Registrar of Company Delhi. The assessee not filed the return of income for A.Y.2012-13 under section 139 of the Act. A search and seizure o

The order continues below.

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