ACIT Vs Shalimar Lakecity Pvt. Ltd. (ITAT Delhi)
ITAT Delhi held that addition under section 68 towards unexplained income rightly deleted as no adverse incriminating material/ document found in the premises of the searched person. Accordingly, appeal of the revenue dismissed.
Facts- Based on the search and seizure operations on Shalimar Group of cases on 18.06.2015, the notice u/s. 153C of the Act was issued to the respondent/assessee. In response to notice u/s. 153C of the Act, the respondent/assessee filed its ITR declaring loss of (-) Rs.19,98,293/- on 12.02.2018.
The case was completed u/s. 153C of the Act wherein loans aggregating to Rs.14,30,00,000/- were treated as unexplained and thus taxed u/s. 68 of the Act. Aggrieved, the respondent/assessee filed appeal before CIT(A), who deleted the entire addition of Rs. 14,30,00,000/-. Being aggrieved, revenue has preferred the present appeal.
Conclusion- Held that there is no adverse incriminating material/document found in the premises of the searched person based on which the addition of Rs.14,30,00,000/- was made in this case. We are therefore, of the considered view that the decision of the Hon’ble Supreme Court in the case of Singhad Technical Education Society 397 ITR 344 and the decisions of the Hon’ble jurisdictional High Court in the cases of RRJ Securities Ltd. and AR Infra India Ltd. 394 ITR 569 are applicable here in the present case. We, therefore, do not find any infirmity in the impugned order and thus, we decline to interfere with the finding of the Ld. CIT(A). Accordingly, the appeal of the Revenue is dismissed.
