BLUE BELL INFOSOLUTIONS PVT. LTD.,NEW DELHI vs. ACIT, NEW DELHI

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ITA 7382/DEL/2025Status: DisposedITAT Delhi09 March 2026AY 2017-2018Bench: SHRI VIMAL KUMAR (Judicial Member)1 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal found that the addition on account of interest expense of Rs. 2,16,061/- was not made out against the assessee, as the expenditure was never claimed by the assessee and was not interest paid. The lower authorities' orders were set aside.

What were the facts?

The assessee's appeal challenges an order confirming an addition of Rs. 2,16,061/- made by the AO under section 69A of the Income Tax Act. The assessee argued that this amount was never claimed as an expenditure, nor was it interest paid, but rather a repayment of an opening balance.

What were the issues?

Whether the addition of Rs. 2,16,061/- as unexplained expenditure under Section 69A is justified when the assessee did not claim it as an expenditure and it was not interest paid.

Which sections of the Income-tax Act were involved?

Section 69A,Section 153C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH, ‘E’: NEW DELHI

Before: SHRI VIMAL KUMAR

For Appellant: Dr. Rakesh Gupta, Adv, Shri Somil Agarwal, Shri Sakshma, Shri Deepesh Garg, Adv, Shri Praving Rawal, CIT-DR
For Respondent: Shri Praving Rawal, CIT-DR
Hearing: 19.02.2026Pronounced: 09.03.2026

ORDER PER AMITABH SHUKLA, AM,

This appeal by the assessee is directed against the order of Ld.

Commissioner of Income Tax(Appeals)- 25, New Delhi [hereinafter referred to as ‘ld. CIT(A)] dated 25.09.2025 arising out of assessment order dated 30.03.2024 passed under section 153C of the Income Tax Act, 1961, for the Assessment Year 2016-17. The word ‘Act’ herein this order would mean Income Tax Act, 1961.

2.

The only issue contested by the assessee to the present appeal is an addition of Rs.2,16,061/- under section 69A of the Act made by the ld. AO and its confirmation by the ld. CIT(A).

3.

Having heard the rival parties in the light of material available on records, we have noted that the short point raised by the ld. Counsel for the assessee is that the ld. AO has proceeded to make disallowance of an expenditure of Rs.2,16,061/- under section 69A, which was never claimed by the assessee in its return of income. The ld. Counsel has provided a paper book so as to allude that no such claim was made. The ld. Counsel has submitted that it did not pay the interest amount of Rs.2,16,061/- to Diwakar Commercial Pvt. Ltd. and that the amount paid to the party was on account of repayment of outstanding opening balance. The ld. Counsel has further alluded making reference to profit & loss account to show that no interest expense of the amount of Rs.2,16,061/- was debited therein.

4.

Upon consideration of the various details and submissions filed by the appellant assessee, we are of the considered view that no case of any addition on account of interest expense of Rs.2,16,061/- is made out in respect of the assessee. Accordingly, the order of the lower authorities is set-aside and the ld.

Page 2 of 3 AO is directed to delete the impugned disallowance of interest expense of Rs.2,16,061/-.

5.

In the result, the appeal of the assessee is allowed.

Order pronounced in the open court on 09th March, 2026.

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