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Facts
The assessee, engaged in manufacturing Patta and Patti, filed its return for AY 2017-18, which was selected for scrutiny. The AO made additions of Rs. 78,73,000/- under section 68 for unexplained debtor realization and Rs. 5,60,000/- for unexplained unsecured loans. The CIT(A)/NFAC subsequently deleted these additions, leading the revenue to file an appeal.
Held
The Tribunal upheld the CIT(A)'s order, rejecting all three grounds of the revenue's appeal. It found that the assessee had provided sufficient evidence for sales, bank deposits, and the genuineness of unsecured loans, and mere non-response to notices under section 133(6) did not disprove the documentation. The Tribunal emphasized that treating amounts already declared as sales as cash credit under section 68 would lead to an impermissible double addition.
Key Issues
Whether the CIT(A) was justified in deleting additions made under section 68 for unexplained debtor realization and unsecured loans, given the alleged failure to prove genuineness and creditworthiness, non-response to notices, and high cash in hand.
Sections Cited
68, 143(1), 143(3), 142(2), 133(6)
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Income Tax Appellate Tribunal, JODHPUR BENCH (Virtual
Before: DR. MITHA LAL MEENA, HONʼBLE & DR. S. SEETHALAKSHMI, HONBLE
Dr. Mitha Lal Meena, A.M.: This appeal by the revenue is directed against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to "the NFAC