ITAT Delhi Deletes Additions on Unsecured loans from sister concern & cash deposits

Godwin Tourism Pvt. Ltd. Vs DCIT (ITAT Delhi) The Income Tax Appellate Tribunal (ITAT) Delhi, in the case of Godwin Tourism Pvt. Ltd. Vs DCIT, delivered a ruling that provides important clarifications on a taxpayer’s burden of proof during assessment proceedings. The appeal addressed three main issues: an ad-hoc disallowance of expenses, an addition of unexplained unsecured loans, and an addition for unexplained cash deposits. The Tribunal ruled in favor of the assessee on all three fronts. First, the ITAT addressed the ad-hoc disallowance of 20% of expenses worth ₹21,51,783. The Assessing...