ACIT Vs Tecxpert Software Pvt Ltd (ITAT Delhi)
In this Revenue appeal, AO reopened the assessment alleging that Assessee had received an accommodation entry of ₹1,90,00,000 from M/s MKD Constructions Pvt Ltd, based entirely on an Investigation Wing report branding MKD as a sham entity. AO treated the amount as unexplained money u/s 69. During reassessment, Assessee filed bank statements, audited financials, tax audit report & confirmations showing that the amount was not received, but actually advanced by Assessee to MKD as a short-term loan, reflected in Note 10 of the tax audit report & supported by a debit entry in Vijaya Bank account.
CIT(A) held that AO misunderstood basic facts & deleted the addition.
Tribunal upheld the CIT(A)’s findings, noting that AO proceeded with borrowed satisfaction, failed to verify documents already on record, and wrongly assumed receipt of ₹1.90 crore when the evidence clearly showed the opposite—that Assessee had given the amount as an advance. The reopening was based on incorrect factual inference, and the addition was rightly deleted. The Revenue’s appeal was dismissed.
FULL TEXT OF THE ORDER OF ITAT DELHI
1. The assessee has filed appeal against the order of the Learned Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi [“Ld. CIT(A)”, for short] dated 04.03.2025for the Assessment Year 2012-13.
