MALLARD SECURITIES PRIVATE LIMITED,FARIDABAD vs. ITO,WARD-16(2), NEW DELHI

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ITA 837/DEL/2023Status: DisposedITAT Delhi27 August 2025AY 2012-13Bench: SHRI YOGESH KUMAR U.S. (Judicial Member), SHRI AVDHESH KUMAR MISHRA (Accountant Member)1 pages

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

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the assessee failed to discharge its onus of proving the identity, genuineness, and capacity of creditors. In the absence of contrary evidence, the Tribunal found no reason to interfere with the CIT(A)'s order.

What were the facts?

The assessee's appeal is against an order that confirmed additions made by the AO. The AO made additions of Rs. 3,03,00,000/- for unexplained credits and Rs. 5,40,05,400/- for unexplained expenditure. The assessee failed to provide required documents to discharge its onus.

What were the issues?

Whether the assessee discharged its onus to prove the genuineness of unexplained credits and expenditure, and if not, whether the additions made by the AO and confirmed by the CIT(A) are justified.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI

For Respondent: Ms. Richa Gaharwar, CIT DR
Hearing: 25/08/2025Pronounced: 27/08/2025

(A.Y 2012-13) Mallard Securities Private Vs. ITO Limited Ward-16(2) 2055-56, 3rd Floor, Gali No. 6, C. R. Building, Chunna Mandi, Pahar Gunj, New Delhi New Delhi PAN: AAHCM6940R Appellant Respondent Assessee by None Revenue by Ms. Richa Gaharwar, CIT DR Date of Hearing 25/08/2025 Date of Pronouncement 27/08/2025 ORDER PER YOGESH KUMAR, U.S. JM:

The present appeal is filed by the Assessee against the order of Ld. Commissioner of Income Tax (Appeals/ National Faceless Appeal Centre (‘Ld. CIT(A)/NFAC’ for short), New Delhi dated 31/01/2023 for the Assessment Year 2012-13.

2.

Brief facts of the case are that, an assessment order came to be passed u/s 143(3)/147 of the Income Tax Act, 1961 ('Act' for short) on 20/12/2018 by making an addition of Rs. 300,03,00,000/- u/s 68 of the Act and addition of Rs. 5,40,05,400/- on account of unexplained investment in the form of expenditure @ 1.8% of the accommodation entry.

3.

Aggrieved by the assessment order dated 20/12/2018, the Assessee preferred an Appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 31/01/2023, dismissed the Appeal filed by the Assessee.

4.

None appeared for the Assessee even after service of notice.

Therefore, we deem it fit to decide the present Appeal on hearing the Ld. Departmental Representative.

5.

The Ld. Departmental Representative relying on the orders of the Lower Authorities sought for dismissal of the Appeal filed by the Assessee.

6.

Heard and perused. During the assessment proceedings, the A.O. issued notice to the Assessee to explain the nature and source of sums credited to its books of account by various Companies. Since the Assessee failed to explain the nature and source of sums credited to its books of account aggregating to Rs. 3,03,00,000/-, the same has been treated as unexplained as per Section 68 of the Act and added to the income of the Assessee. Further the Ld. A.O. held that the Assessee has incurred unexplained investment in the form of expenditure @ 1.8% of the accommodation entry which amount to Rs. 5,40,05,400/- and added the same to the income the Assessee.

7.

During the appellate proceedings, the Ld. CIT(A) has thoroughly dealt with the issues on merits and decided the Grounds of Appeal of the Assessee and dismissed the Appeal on the Ground that the Assessee has not discharged its onus by providing requireddocuments either before the A.O. or before the appellate proceedings in order to prove the identity of the creditor, genuineness of the transaction and capacity of creditors by means available and to prove the transaction.

As the onus cast upon the Assessee has not been discharged, the Ld. CIT(A) confirmed the additions made by the A.O. In the absence of any contrary materials to contradict the findings of the Lower Authorities brought on record by the Assessee, we find no reason to interfere with the order of the Ld. CIT(A). Finding no merits in the Grounds of Appeal of the Assessee, the appeal of the Assessee is hereby dismissed.

Order pronounced in the open court on 27th August, 2025

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