Addition of unexplained income unsustainable as source of money and identity of creditors explained

ITO Vs Sporting Pastime India Ltd. (ITAT Chennai)

ITAT Chennai held that addition of unexplained income unsustainable as source of money including identity of the creditors is duly explained by the assessee and further the amount has been transferred through proper banking channel only.

Facts-

The assessee company is engaged in project of developing golf course and related works in East Coast Road of Chennai. During the course of assessment proceedings, AO on the basis of information furnished by the assessee opined that the assessee has derived benefit in the form of cessation of liability towards amount received from M/s. M/s.Cheran Holdings Pvt Ltd. upon takeover company by M/s. KCP Ltd. and thus, made additions of Rs.25 crores as unexplained income of the assessee.

CIT(A) after considering the relevant facts deleted the additions. Being aggrieved, revenue has preferred the present appeal.

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