Prestigious Enterprises Pvt. Ltd. Vs ACIT (ITAT Delhi)
Pursuant to earlier ITAT remand for de novo adjudication, AO accepted ₹1 crore compensation as capital receipt but again added ₹50 lakh u/s 68, noting deficiencies in confirmation from creditor M/s Treatwell Investments Pvt. Ltd., absence of company stamp, no cheque details, bank entry not reflecting payer identity, & failure to explain immediate source. CIT(A) confirmed addition, holding that Assessee failed to establish identity, creditworthiness & genuineness of transaction, particularly as creditor’s return showed NIL income, indicating lack of capacity, & mere banking channel does not prove genuineness.
Tribunal observed that despite multiple opportunities, Assessee could not cure basic defects or rebut adverse findings, nor establish purpose or source of advance. Holding that Section 68 onus remained undischarged even after remand, ITAT upheld addition of ₹50 lakh & dismissed appeal.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal has been preferred by the assessee against the order of the Commissioner of Income Tax (Appeals)-31, [hereinafter referred to as the ‘Ld. CIT(A)] Delhi, dated 30.09.2019 pertaining to Assessment Year 2007-08, arising out of Assessment order dated 26.03.2018 under Section 254/143(3) of the Income-tax Act, 1961(hereinafter referred to as ‘the Act’).
2. This assessment order has been passed in consequence to the directions of the Tribunal vide order dated 29.11.2017 in ITA No. 5676/Del/2011, wherein inter alia the issue relating to the addition of Rs.50 lakhs u/s 68 of the Act was set aside to the file of the Assessing Officer (AO) to decide it denovo.
