Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (3) TMI 1449 - ITAT DELHIAddition u/s 68 - unsecured loans/deposits - HELD THAT:- We find that the issue in question is covered in favour of the assessee and against the Revenue by the decision in the case Vijay Conductors India Pvt.Ltd [2015 (9) TMI 1519 - DELHI HIGH COURT] wherein had upheld the order of the Tribunal Settlement Commission and determined the income of Mr. S.K. Gupta without making any addition for unexplained cash credit. During the course of assessment Proceedings of the intermediary companies, including the Respondent Assessees, AO sought directions from the ACIT u/s 144-A. Additional CIT passed an order in which after discussing the facts he inter alia directed that it would be in the best interest of the Revenue to tax these transactions in the hands of beneficiaries and Mr. S.K. Gupta "without making any additions on this account in the hands of conduit entities". The said orders of the Settlement Commission or of the Additional CIT were binding on the AO. It is not in dispute that the Assessees are the conduit entities and not the beneficiaries. Consequently, the order of the ITAT deleting the addition u/s 68 in their hands does not suffer from any legal infirmity. Respectfully following the decision in the case of PRO CIT vs. Vijay Conductors India Pvt.Ltd. and other cases [2015 (9) TMI 1519 - DELHI HIGH COURT] we delete the addition and allow the claim of the assessee.
|