ITAT Deletes Section 69B Addition: Crane Cost Inflation for Loan Facility

KVR Infra Vs ACIT (ITAT Mumbai) Introduction: The case of KVR Infra vs. ACIT (ITAT Mumbai) revolves around the deletion of an addition made under Section 69B of the Income Tax Act concerning the inflated cost of a crane in an agreement. The agreement’s exaggeration was primarily aimed at securing a higher banking loan facility for financing the crane. In this article, we provide a detailed analysis of the case’s background, arguments, and the ITAT’s decision. Detailed Analysis 1. Background of the Case KVR Infra, a partnership firm engaged in crane hiring, purchased a crane (...