ACIT Vs VNG Impex P. Ltd (ITAT Delhi)
ITAT Delhi Deletes ₹30 Crore Additions u/s 68 Upholds Capital Loss Claim – AO Ignored Evidence Natural Justice- Cheque Cleared Later Still a Payment – No Scope for s.68 Additions- Tribunal Slams Mechanical section 68 Additions
Assessee, engaged in share trading, filed return declaring loss of ₹ 23.37 crores. AO noted receipt of ₹ 11.45 crores from Naïve Construction Pvt. Ltd. & ₹ 9.80 crores from Vigil Real Estate Pvt. Ltd.; part of these liabilities were discharged through cheques dated 31-03-2012 but cleared in June 2012. AO treated unpaid portions (₹ 5.05 cr + ₹ 3.30 cr) as unexplained credits u/s 68.
AO also noticed various bank receipts aggregating ₹ 25.66 crores from different parties, of which ₹ 4 crores from Civic Marketing Pvt. Ltd. were accepted; balance ₹ 21.66 crores were added u/s 68.
Further, Assessee’s claim of short-term capital loss of ₹ 23.37 crores on sale of shares through Share India Securities Ltd. & Integrated Master Securities Pvt. Ltd. was rejected; AO treated it as business loss & disallowed jobbing loss of ₹ 1.87 lakh.
CIT(A)’s Findings
CIT(A) deleted all additions:
Naïve Construction & Vigil Real Estate: Cheques for ₹ 5.05 cr & ₹ 3.30 cr were issued on 31-03-2012 & duly recorded in books. Subsequent clearance in June/July 2012 did not attract s. 68 as liability stood discharged on cheque-issue date.
