ACIT Vs Triveni Impex Private Limited (ITAT Delhi)
The Delhi Bench of the Income Tax Appellate Tribunal considered an appeal filed by the Revenue against the order of the Commissioner of Income Tax (Appeals) dated 13.03.2025, which had deleted additions made under section 68 of the Income Tax Act for assessment year 2017–18. The assessment arose from scrutiny proceedings in which the Assessing Officer treated receipts of ₹5.49 crore from two parties as accommodation entries and added the same as unexplained cash credits. The Assessing Officer relied on information from the Investigation Wing alleging that the concerned parties were sham entities and concluded that the assessee had failed to discharge the burden of proving identity, genuineness, and creditworthiness. An additional addition of ₹37 lakh was also made on account of alleged unexplained cash deposits during the demonetization period.
Before the first appellate authority, the assessee explained that it was engaged in trading and export of dry fruits, spices, and other goods, and that the amounts received represented sales proceeds through banking channels. The assessee furnished confirmations, income tax returns, bank statements, sales invoices, transportation documents, VAT returns, stock registers, and audited books of account. The CIT(A) observed that the Assessing Officer had not brought any material on record to rebut these evidences and had not rejected the books of account. It was held that the assessee had discharged the onus under section 68 and that sales recorded as part of turnover could not be treated as unexplained credits. Accordingly, the addition of ₹5.49 crore was deleted.
