Case Law Details
JCIT Vs Ajay Sharma (ITAT Delhi)
Introduction: In the case of JCIT vs. Ajay Sharma, the Income Tax Appellate Tribunal (ITAT) Delhi addressed an appeal against the order of the National Faceless Appeal Centre (NFAC), New Delhi, dated 11th October 2021, pertaining to the assessment year 2009-10. The key issue revolved around the addition of Rs. 1.95 crores made on account of unexplained investment under Section 69 of the Income Tax Act, 1961.
Background of the Case: The central matter in this case pertains to the alleged unexplained investment of Rs. 1.95 crores by the assessee, Mr. Ajay Sharma. The dispute arose from a collaboration agreement and the nature of payments made by the assessee, which led to the addition of Rs. 1.95 crores by the Assessing Officer under Section 69 of the Income Tax Act.
Key Grounds Raised: The grounds raised by the revenue in the appeal were as follows:
(i) Ld. CIT(A) erred in deleting the addition of Rs. 1.95 crores made on account of unexplained investment under Section 69 of the Income Tax Act, 1961.
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