DCIT Vs Ace Infracity Developers Pvt. Ltd. (ITAT Delhi)
ITAT Delhi held that cash is duly recorded in the books of accounts hence addition of the same under section 69A of the Income Tax Act as unexplained money. Accordingly, addition rightly deleted by CIT(A). Appeal of the revenue dismissed.
Facts- A search and seizure operation was conducted on 28.07.2021 at the premises of the ACE and Kurle Group and then again on Ace & Rudra Group on 04.01.2022. The search warrant was in the name of M/s. ACE Infracity Developers Pvt. Ltd.
The assessee company filed its return of income u/s 139(1) of the Act on 04.11.2022, declaring total income of INR 21,25,86,720/-. Based on the material available on record and considering the facts and circumstances of the case, assessment proceedings were initiated in terms of notice u/s 143(2) of the Act issued on 27.02.2023. Thereafter, the AO computed the total income of the assessee company at INR 22,94,83,823/- vide assessment order dated 28.03.2024 passed u/s 143(3) of the Act wherein addition of Rs. 40,00,000/- was made u/s 68 r.w.s. 115BBE of the Act towards the loan taken from M/s Hallow Securities Pvt. Ltd., addition of INR 87,25,098/- was made u/s 69A r.w.s. 115BBE of the Act towards cash balance held as unexplained and disallowance of INR 41,72,005/- was made u/s 37 of the Act towards various expenses.
