Case Law Details
Balaji Tirupati Buildcon Ltd Vs ITO (ITAT Delhi)
Introduction: The Income Tax Appellate Tribunal (ITAT) of Delhi, in the case between Balaji Tirupati Buildcon Ltd and the Income Tax Officer (ITO), has ruled on the matter of additions under Section 68 of the Income Tax Act. The key contention here is whether an addition can be made if the amount doesn’t appear in the books of account.
Analysis: The appellant, Balaji Tirupati Buildcon Ltd, contended against an addition of Rs. 17,90,671/- made under Section 68, stating that this amount was neither earned nor received as interest income during the year. Furthermore, they affirmed that this amount was not found credited in the books of account for that year.
The Revenue, based on AIR Information, pointed out that there was a TDS deduction on this sum, suggesting its receipt. However, the representative of Balaji Tirupati Buildcon Ltd highlighted that no TDS had been claimed by them, neither had they shown this amount as interest income. The ITAT bench, on reviewing the presented facts, noted that neither interest income was shown, nor was TDS claimed, thereby rendering the addition made by the Assessing Officer as unsustainable.
Conclusion: The ITAT Delhi’s judgment emphasizes the importance of the physical presence of any amount in the books of account for its addition under Section 68 of the IT Act. In this specific case, since Balaji Tirupati Buildcon Ltd did not recognize or show any interest income related to the said amount, the addition made was deemed inappropriate and was subsequently deleted.
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