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Facts
The assessee's appeal for AY 2010-11 was against an order that made an addition of Rs. 45 lakhs on account of unexplained cash credit, alleged to be share application money from three entities.
Held
The Tribunal noted that the assessment orders for the three entities, passed after a search action, did not assess them under sections 68 or 69, leading to the conclusion that they were not accommodation entry providers.
Key Issues
Whether the addition made under Section 68 for unexplained cash credit is justified when the source entities were not assessed for accommodation entries in their own assessment proceedings.
Sections Cited
147, 143(3), 153C, 68, 69
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’ NEW DELHI
Before: SHRI SATBEER SINGH GODARA
O R D E R PER SATBEER SINGH GODARA, J.M: This assessee’s appeal for assessment year 2010-11 arises against National Faceless Appeal Centre (NFAC) Delhi’s’ order dated 21.07.2025 [DIN & Order No. ITBA/NFAC/S/250/2025-26/1078715193(1)] in proceedings u/s 147 r.w.s. 143(3) of the Income-tax Act, 1961, hereinafter referred to as the ‘Act’.
Heard both the parties. Case file perused. 2. Suffice to say, it emerges during the course of hearing that both the learned lower authorities have made section 68 unexplained cash credit addition in the assessee’s hands to the tune of Rs. 45 lakhs allegedly received from M/s Sunny Cast & Forge Ltd., Attractive Finlease Pvt. Ltd. and Shalini Holdings Ltd. involving share application premium money of Rs. 25 lakhs, Rs. 10 lakhs each, respectively.
3. There is no dispute between the parties that learned lower authorities have proceeded against the assessee in furtherance to a search action on M/s S.K. Jain group. The assessee has invited the tribunal’s attention to the respective assessment orders passed u/s 153C of the Act, all dated 28.03.2013 in the above three entities’ cases not assessing them either u/s 68 or 69, as the case may be, which leads to the conclusion that they could not have been held as accommodation entry providers and the assessee being beneficiary thereof; as the case may be, for the purpose of making the impugned addition. The same is directed to be deleted, therefore.
Order pronounced in open court on 28.08.2025.