Asha Gupta Vs ACIT (ITAT Delhi)
Income Tax Appellate Tribunal (ITAT), Delhi bench, has set aside an order by the Commissioner of Income Tax (Appeals) [CIT(A)] and remanded the case of Asha Gupta back to the Assessing Officer (AO) for a fresh adjudication regarding an addition of Rs. 40 lakhs made under Section 68 of the Income Tax Act, 1961. The Tribunal’s decision, pronounced on June 27, 2025, emphasizes the need for a comprehensive analysis of facts and a proper opportunity for the assessee to present evidence.
Background of the Addition
The core dispute in this appeal for Assessment Year 2012-13 revolved around an addition of Rs. 40 lakhs made by the AO under Section 68 of the Act, which deals with unexplained cash credits. The AO’s decision to make this addition stemmed from what was perceived as “insufficient compliance” by the assessee to prove the genuineness of the transaction.
According to the assessee’s submissions, during the financial year relevant to AY 2012-13, a firm named M/s. MA Enterprises, in which the assessee, Asha Gupta, is a partner, had extended a loan of Rs. 40 lakhs to SVJ Developers Pvt. Ltd. This fact was reportedly confirmed before the AO by Mr. Vijay Kumar Garg, a Director of SVJ Developers Pvt. Ltd. However, the assessee contended that, by mistake, this loan amount was subsequently returned directly to Asha Gupta, the individual assessee. This explanation was presented to the AO during the assessment proceedings but was not accepted, leading to the impugned addition.
