Case Law Details
ITO Vs Finwiz Capital Services Pvt Ltd (ITAT Delhi)
ITAT Delhi held that addition towards unexplained cash credit under section 68 of the Income Tax Act unsustainable as nature and source of credit duly explained by the assessee.
Facts- The assessment of the assessee was reopened vide issuance of notice u/s 148 of the Income Tax Act. It was concluded that Shri R N Aggarwal had no actual business transactions with the assessee and credit entries including cash deposits appearing in the bank accounts of M/s Sidh Trading Agency, M/s Pride Trade Agency and M/s R.N. Aggarwal & Co. are nothing but accommodation entries and assessee is one of the beneficiaries of the accommodation entries.
AO concluded that Shri R.N. Aggarwal had stated that the bank entries reflected relate to business transactions and total entries pertaining to assessee was arrived at Rs 2,83,75,000/-, for which no explanation was provided by the assessee. Hence AO proceeded to add the same as unexplained cash credit u/s 68 of the Act in the hands of the assessee while framing the assessment u/s 144 r.w. section 147 of the Act.
CIT(A) deleted the addition. Being aggrieved, revenue has preferred the present appeal.
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