ACIT, DELHI vs. ANIMATE INFRASTRUCTURE PVT LTD, DELHI

ITA 3174/DEL/2026Status: DisposedITAT Delhi25 September 2026AY 2017-1825 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the identity, creditworthiness, and genuineness of the transactions were established. Regarding the Rs. 3.60 crore transaction with M/s Fennie Commercial Pvt. Ltd., the Tribunal noted that the lender confirmed providing share application money, which the appellant accounted for as an unsecured loan. The AO's verification of the ledger account and the lender's financial documents, including a significant share premium reserve, supported the genuineness of the transaction. The Tribunal found no evidence to negate the transaction's genuineness and stated that additions cannot be sustained on suspicion alone. Relying on CIT Vs. Fairfinvest Ltd., the Tribunal directed the deletion of the addition of Rs. 3,60,00,000/-. The Revenue's appeals were dismissed, and the assessees' cross-objections were not explicitly decided but were implicitly allowed by the deletion of the addition.

What were the facts?

This judgment consolidates sixteen appeals and cross-objections concerning two assessees: M/s Animate Infrastructure Pvt. Ltd. and Madhav Bhageria. The assessment years range from 2014-15 to 2021-22. The core issue revolves around additions made by the Assessing Officer (AO) under Section 68 of the Income Tax Act, 1961, for unexplained cash credits, specifically unsecured loans. These proceedings were initiated following a search action on the Filatex India Ltd. group. The CIT(A) had deleted these additions, leading to the Revenue's appeals. The assessees' cross-objections are also part of the consolidated proceedings. A key transaction under scrutiny involves an alleged unsecured loan of Rs. 3.60 crores from M/s Fennie Commercial Pvt. Ltd. to Animate Infrastructure Pvt. Ltd.

What were the issues?

1. Whether the Tribunal had to decide if the Revenue's appeals, seeking to revive the AO's additions of unsecured loans as unexplained cash credits under Section 68 of the Income Tax Act, 1961, were valid. The Revenue argued that the assessees failed to prove the identity, genuineness, and creditworthiness of the lenders, particularly M/s Satsai Finlease Private Limited, relying on the Supreme Court decision in Sumati Dayal Vs. CIT. The assessee contended that the identity, creditworthiness, and genuineness of the transactions were established. 2. Whether the Tribunal had to decide if the CIT(A) erred in deleting the addition of Rs. 3,60,00,000/- made on account of unexplained income under Section 68 of the Income Tax Act, 1961. The assessee argued that M/s Fennie Commercial Pvt. Ltd. provided share application money, not an unsecured loan, and that the source of funds was explained and supported by documentation. The Revenue argued that the transaction was an accommodation entry.

Which sections of the Income-tax Act were involved?

Section 68,Section 153A,Section 143(3),Section 133(6)

AI-generated summary — verify with the full judgment below

Heard together (5 matters)

ITA 3173/DEL/2026
CO 189/DEL/2026
ITA 3174/DEL/2026
CO 190/DEL/2026
ITA 3175/DEL/2026

Read from the judgment's own cause title. This page is filed under one of them.

आयकर अपीलीय अिधकरण, िद"ी पीठ", नई िद"ी INCOME TAX APPELLATE TRIBUNAL, DELHI BENCHES, NEW DELHI BENCH: G BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA 3173/DEL/2026 (िनधा"रण वष"/Assessment Year: 2015-16) CO 189/DEL/2026 (िनधा"रण वष"/Assessment Year: 2015-16) ACIT ANIMATE INFRASTRUCTURE OFFICE OF THE AASISTANT ANIMATE INFRASTRUCTURE COMMISIONER OF INCOME PVT LTD . 43, COMMUNITY TAX,ROOM NO 332 A, 3RD FLOOR CENTRE , NEW FRIENDS Vs. ,ARA CENTRE, JHANDEWALAN COLONY NEW DELHI EXTNSION, NEW DELHI-110055, NEW DELHI-110025, DELHI DELHI अपीलाथ"/ Appellant ""थ" Respondent/ Cross Objector PAN of Assessee: AAFCA5533Q ITA 3174/DEL/2026 (िनधा"रण वष"/Assessment Year: 2017-18) CO 190/DEL/2026 (िनधा"रण वष"/Assessment Year: 2017-18) ACIT ANIMATE INFRASTRUCTURE PVT LTD OFFICE OF THE AASISTANT COMMISIONER OF INCOME ANIMATE INFRASTRUCTURE TAX,ROOM NO 332 A, 3RD FLOOR PVT LTD . 43, COMMUNITY Vs. ,ARA CENTRE, JHANDEWALAN CENTRE , NEW FRIENDS EXTNSION, NEW DELHI-110055, COLONY NEW DELHI DELHI NEW DELHI-110025, DELHI अपीलाथ" /Appellant ""थ" Respondent/ Cross Objector PAN of Assessee: AAFCA5533Q ITA 3175/DEL/2026 (िनधा"रण वष"/Assessment Year: 2018-19) CO 191

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 68

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

Recent GST High Court judgments

Search GST case law →