JAYALAKSHMI ALLOYS INDIA (P) LTD,COIMBATORE vs. ITO, CORP WARD -2, COIMBATORE
In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.
What did the Tribunal hold?
The Tribunal confirmed the addition made under section 68 of the Income Tax Act, 1961, as the assessee failed to provide sufficient evidence to substantiate the credit in its books of account.
What were the facts?
The assessee's return of income was taken up for scrutiny, and an addition was made under section 68 for unexplained credit. The CIT(A) confirmed the addition as the assessee failed to furnish supporting documents for the credit.
What were the issues?
Whether the addition made under Section 68 for unexplained credit is justified when the assessee fails to provide supporting documents.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Before: Shri Inturi Rama Rao & Shri Duvvuru RL Reddy
O R D E R
PER DUVVURU RL REDDY, JUDICIAL MEMBER:
This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals) 1, Coimbatore, dated 07.11.2018 relevant to the assessment year 2014-15. The only effective ground raised in the appeal of the assessee is that the ld. CIT(A) has erred in confirming the addition made under section 68 of the Income Tax Act, 1961 [“Act” in short].
Brief facts of the case are that the assessee filed its return of income for the assessment year 2014-15 on 28.11.2014 admitting income of ₹. 22,25,153/-. The return filed by the assessee was taken up for scrutiny. After considering the details filed against statutory notices, the assessment under section 143(3) of the Act was completed by assessing income of the assessee at ₹. 28,63,455/- after making addition under section 68 of the Act on the ground that the assessee has not furnished any details with regard to the credit available in the books of account. On appeal, since the assessee could not furnish any supporting documents for the credit, the ld. CIT(A) confirmed the addition made under section 68 of the Act.
On being aggrieved, the assessee is in appeal before the Tribunal. Despite service of notice [RPAD on record], none appeared on behalf of the assessee nor any adjournment petition filed. Hence, we proceed to decide the appeal on merits after hearing the ld. DR.
We have heard the ld. DR, perused the materials available on record and gone through the orders of authorities below. In this case, the assessee was show-caused to furnish details to verify the credit of ₹.6,38,302/- shown against M/s. Aditya Enterprises. Since the assessee could not furnish any details against the credit, the Assessing Officer treated the same as unexplained credit under section 68 of the Act and brought to tax. On appeal, the assessee produced a ledger copy of the account and confirmation letter, which were forwarded to the Assessing Officer to file remand report after enquiry, etc. Copy of the remand report was forwarded to the assessee for compliance. However, there was no response from the assessee to the remand report forwarded by the ld. CIT(A). The creditors just filed a simple letter confirming the outstanding balance. The party has not produced any details of the sale bills, items transacted, mode of subsequent payment, etc. When this new information was passed on to the assessee, even the assessee company could not produce any supporting documents. Inspite of repeated opportunities, the assessee could not prove the purchase before the ld. CIT(A). Thus, the ld. CIT(A) was of the opinion that the assessee has inflated the purchase to the extent of ₹.6,38,302/- and accordingly confirmed the addition made by the Assessing Officer. Before the Tribunal also, no material was brought on record. Accordingly, we confirm the orders of authorities below.
In the result, the appeal filed by the assessee is dismissed. Order pronounced on the 25th July, 2019 in Chennai.
More judgments on Section 68
- ACIT Central Bilaspur, Bilaspur vs Arun Kumar Agrawal, SaktiITSSA 26/RPR/2025[2018-19]Status: Disposed21 Oct 2026AY 2018-19
- Neo Incorporation, Rajkot vs DCIT Circle- 1(2), RajkotITA 471/RJT/2026[2012-2013]Status: Disposed21 Oct 2026AY 2012-2013
- Bliss Dealtrade Private Limited, Kolkata vs Income Tax Officer - Ward 9(2) Kolkata…ITA 208/KOL/2026[2012-13]Status: Disposed21 Oct 2026AY 2012-13
- Hemal Paresh Madeka, Rajkot vs Asst.Commissioner of Income Tax…ITA 955/RJT/2026[2020-21]Status: Disposed19 Oct 2026AY 2020-21
- Ajaybhai Dineshbhai Bagdai, Near Central… vs The Income Tax Officer, Ward-1(2)(1), New…ITA 74/RJT/2026[2013-14]Status: Disposed19 Oct 2026AY 2013-14
Recent GST High Court judgments
Search GST case law →- Sutlej Textiles And Industries Limited vs. Union Of INDIARajasthan · 26 Oct 2026
- M/S. Ut Corp vs. Union Of INDIARajasthan · 26 Oct 2026
- Sunrise Engineering vs. The State Of Andhra PradeshAndhra Pradesh · 26 Oct 2026
- M/S Kalra Traders vs. Union Of INDIAUttarakhand · 26 Oct 2026
- Ms Isoft vs. The Commissioner State TaxUttarakhand · 26 Oct 2026