SSC Hospitality Pvt Ltd Vs ITO (ITAT Delhi)
The case of SSC Hospitality Pvt Ltd vs ITO (Income Tax Appellate Tribunal, Delhi) involves an appeal by the assessee against the Commissioner of Income-tax (Appeals) [CIT(A)]’s order for the assessment year 2014-15. The key issue revolves around the addition of Rs.1,26,23,000 under section 68 of the Income-tax Act, 1961 (“the Act”).
Background
- Non-Responsiveness of Assessee: The appeal was called for a hearing on multiple occasions, but the assessee consistently failed to appear. Notices sent through registered post/speed post were returned unserved, indicating that no such person was available at the given address. Even attempts to communicate through the provided email address yielded no response.
- Ex Parte Proceedings: Due to the assessee’s persistent non-compliance and absence, the proceedings were conducted ex parte. The tribunal decided to proceed with the appeal based on the materials available on record.
- Assessment and Addition: The assessee, a resident corporate entity, filed its return of income for the relevant year but was selected for scrutiny. The Assessing Officer observed that despite several statutory notices, the assessee did not respond. Only shortly before the completion of the assessment, one of the directors appeared but failed to provide conclusive evidence regarding the genuineness of unsecured loans amounting to Rs.1,26,23,000. The Assessing Officer treated these unexplained loans as cash credits under section 68 of the Act, adding them to the income of the assessee.
- First Appellate Authority’s Decision: The assessee appealed to the CIT(A), but the appeal was dismissed. The CIT(A) noted the lack of proper compliance and failure to furnish conclusive evidence to prove the identity, creditworthiness of creditors, and genuineness of the unsecured loans.
Assessee’s Grounds of Appeal
The assessee raised two grounds in the appeal:
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