THREE SEASONS WARE HOUSING,KAKINADA vs. INCOME TAX OFFICER, WARD-1, KAKINADA

PDF · subscribers
ITA 286/VIZ/2023Status: DisposedITAT Visakhapatnam20 February 2025AY 2018-19Bench: the Ld. CIT(A)-NFAC.10 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal admitted additional evidence and found that the funds originated as a material advance from M/s. Three Seasons Exim Ltd to the assessee-firm, subsequently re-cycled through the partners back to the company. Since the original source of funds was established and transactions occurred via banking channels, the Tribunal held that the addition under Section 68 was not justified.

What were the facts?

The assessee, a partnership firm, received Rs. 16.23 crore as unsecured loans/advances from M/s. Three Seasons Exim Ltd. The Assessing Officer added this amount under Section 68 as unexplained cash credit, contending that the assessee failed to prove the identity, genuineness, and creditworthiness of the creditors, a decision upheld by the CIT(A).

What were the issues?

Whether the addition made under Section 68 for alleged unexplained unsecured loans/advances, where funds were claimed to be re-cycled between related entities, was justified.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 143(2),Section 142(1),Section 133(6),Section 68,Section 115BBE

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, VISAKHAPATNAM DIVISION BENCH, VISAKHAPATNAM

Before: SHRIK NARASIMHA CHARY, HON’BLE & SHRI S BALAKRISHNAN, HON’BLE

For Respondent: Dr. Satyasai Rath, CIT-DR
Hearing: 27/01/2025Pronounced: 20/02/2025

आदेशकीप्रनतनलनपअग्रेनर्त/Copy of the order forwarded to:- निर्धाररती/ The Assessee–Three Seasons Ware Housing, D.No. 2-62-8, 1. Pedhireddy Vari Street, Santhi Nagar, Kakinada, Andrha Pradesh- 533003. रधजस्व/The Revenue – Income Tax Officer, Ward-1, O/o. ITO, 2. Deepthi Towers, Main Road, Kakinada, Andhra Pradesh-533001. 3. The Principal Commissioner of Income Tax, आयकरआयुक्त (अपील)/ The Commissioner of Income Tax 4. नवभधगीयप्रनतनिनर्, आयकरअपीलीयअनर्करण, नवशधखधपटणम/ DR,ITAT, 5. Visakhapatnam गधर्ाफ़धईल / Guard file 6.

आदेशधिुसधर / BY ORDER

Sr. Private Secretary ITAT, Visakhapatnam

More judgments on Section 142(1)

All 17,244 judgments and leading authorities on Section 142(1) →

Recent GST High Court judgments

Search GST case law →