ITO Vs Supergold Properties Pvt. Ltd. (ITAT Mumbai)
Summary: The Mumbai Bench of the Income Tax Appellate Tribunal dismissed all six Revenue appeals for Assessment Year 2011-12, upholding the orders of the Commissioner of Income Tax (Appeals). The principal dispute concerned an addition of Rs.9,85,00,000/- made under section 68 of the Income-tax Act, 1961 in ITA No.178/M/2020. The remaining appeals—ITA Nos.177, 179, 180, 1233 and 1234/M/2020—were held to be governed mutatis mutandis by the Tribunal’s decision in ITA No.178/M/2020.
The Revenue challenged deletion of the section 68 addition on the basis that the assessee had received unexplained cash credit from bogus entities and had failed to discharge its primary burden. The assessee relied principally on the coordinate bench’s decision in ITA No.3593/M/2019, A.Y. 2010-11, dated 25.06.2020, concerning its sister concern and materially similar facts.
In the case considered in ITA No.178/M/2020, the assessee had filed its return on 22.09.2011 declaring income of Rs.48,790/-. The assessment was initially processed under section 143(1). Following information from the DDIT (Investigation), Unit 2(1), Kolkata, that Rs.9.85 crore had been received from Minaxi Suppliers Pvt. Ltd. through a chain of entities allegedly involving shell and non-existent companies, the assessment was reopened. Notice under section 148 was issued on 29.03.2018, and the assessee filed a return on 26.04.2018 again declaring Rs.48,790/-.
