Case Law Details
PCIT Vs Avdesh Mishra (Delhi High Court)
Introduction: In the case of “PCIT Vs Avdesh Mishra,” pertaining to Assessment Year 2016-17, the Delhi High Court delivered a significant verdict. The essence of this case revolves around the Assessing Officer’s addition for an unsecured loan obtained by the respondent/assessee from Dayal Trust. This article provides an in-depth analysis of the court’s decision and the circumstances leading to the deletion of the addition.
AO’s Addition for Unsecured Loan: The Assessing Officer (AO) had, through an assessment order dated 22.12.2018, made additions to the respondent/assessee’s income. This addition was attributed to an unsecured loan from Dayal Trust, totaling Rs. 2,91,00,849/-
Additional Addition for Interest Payment: In addition to the unsecured loan, the AO also added an amount of Rs. 35,71,306/- for the interest paid by the respondent/assessee to Dayal Trust. The cumulative addition made by the AO was Rs. 3,26,72,155/-, under Section 68 read with Section 115BBE of the Income Tax Act, 1961.
Appeal to CIT(A) and Tribunal: The respondent/assessee, dissatisfied with the AO’s additions, appealed to the Commissioner of Income Tax (Appeals) [CIT(A)]. Subsequently, the CIT(A), in an order dated 28.02.2020, removed the addition after considering additional evidence submitted by the respondent/assessee. An appeal by the appellant/revenue to the Tribunal was dismissed, affirming the CIT(A)’s order.
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