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ITO Versus IGB Infrastructure Ltd.

2015 (4) TMI 476 - ITAT DELHI

Disallowance of unexplained credit, impliedly u/s 68 - assessee argued before the ld. CIT(A) that some land was purchased by the assessee from Shri Narender Kumar for a sum of ₹ 18,74,07,000/- which appeared as stock in its balance sheet under the head ‘Inventories.’ - confirmation could not be obtained from Shri Narender Kumar as the time given by the AO was too short. Considering these facts, the ld. CIT(A) deleted the addition - Held that:- In principle, there can be no dispute on the p .....

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. CIT(A) was not given to the AO, enabling him to examine its veracity w.r.t. the books of accounts. Under such circumstances, we set aside the impugned order on this score and remit the matter to the file of the AO for examining the assessee’s claim - Matter remanded back.

Case of the assessee is that the sum of ₹ 3,67,395/- was claimed as deduction in the preceding year which was disallowed by the AO and the reversal by means of write back of this amount in the current year co .....

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as the assessee has not challenged it in the appellate proceedings, then, the amount of ₹ 3.67 lac, representing the write back of the same amount, should not be taxed in the assessment of the current year. - Matter remanded back - Decided in favour of Revenue. - ITA No.1984/Del/2011 - Dated:- 20-3-2015 - Shri R.S. Syal And Shri C.M. Garg JJ. For the Appellant : Shri Rajan Bhatia, Advocate For the Respondent : Shri T. Vasanthan, Sr. DR ORDER Per R.S. Syal, AM: This appeal by the Revenue a .....

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mar. Vide order sheet entry dated 4.12.2009, the assessee was asked to furnish confirmation from the said party, which was not complied with. The assessee submitted that the said liability was discharged in the subsequent year. In the absence of any documentary evidence substantiating the genuineness of the credit, the AO made addition of ₹ 2,06,91,000/- as unexplained credit, impliedly u/s 68 of the Income-tax Act, 1961 (hereinafter also called the Act ). The assessee argued before the ld .....

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umar was 3,36,91,000/- and after making payment of ₹ 1.30 crore during the year in question, the outstanding balance stood reduced to ₹ 2,06,91,000/-. The assessee submitted that confirmation could not be obtained from Shri Narender Kumar as the time given by the AO was too short. Considering these facts, the ld. CIT(A) deleted the addition. The Revenue is aggrieved against the deletion of this addition. 4. We have heard the rival submissions and perused the relevant material on reco .....

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render Kumar and, after making the payment, the closing balance payable to him as on 31.3.2006 stood at ₹ 3.36 crore, out of which a sum of ₹ 1.30 crore was paid during the year, leaving the remaining closing balance at ₹ 2.06/- crore. If this position is correct, then, of course, there can be no addition of ₹ 2.06 crore and odd in the instant year for the reason that it emerged as a part of the opening balance. On a specific query from the Bench, the ld. AR could not dra .....

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emit the matter to the file of the AO for examining the assessee s claim on the above lines. If it is found that the amount of credit in the name of Shri Narender Kumar at the beginning of the year stood at ₹ 3,36,91,000/- and the closing balance at ₹ 2,06,91,000 pertained to Sh. Narinder Kumar out of such opening balance, then, of course, there can be no question of making any addition for this sum in the current year. If the position turns out to be otherwise, then the AO may proce .....

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o.2 of the assessee s cross objection is against the diminution in the value of investment amounting to ₹ 3,67,395/- which was already taxed in the immediately preceding year. 6. We have heard the rival submissions and perused the relevant material on record. This issue does not arise out of the assessment order, because the assessee wrote back this amount and offered it for taxation and as such there was no controversy. The assessee took up a ground before the ld. CIT(A) challenging the n .....

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