Additions Based on Bank Credits Without Verification Unjustified – CIT(A)’s Factual Findings Upheld

ITO Vs SR Peddi Estates India Pvt. Ltd. (ITAT Hyderabad)

Assessee, engaged in leasing out modified commercial premises to IT companies, failed to file its return of income for A.Y. 2015-16. Based on TDS information, the AO reopened the case u/s 147 & issued notice u/s 148.

In the reassessment, AO found bank credits aggregating ₹5.40 crore while turnover per P&L was only ₹1.00 crore. The difference of ₹4.39 crore was treated as unexplained income, leading to an assessment at ₹4.63 crore u/s 147 r.w.s. 144B.

CIT(A), NFAC deleted the addition after detail

Please become a Premium member. If you are already a Premium member, login here to access the full content.