DCIT Vs Bankutramana Bullion and Diamond Pvt. Ltd. (ITAT Agra Bench)
Reopening Without Enquiry, Additions Without Evidence: Agra ITAT Upholds Deletion of ₹7.08 Crore Additions
Summary: The assessee-company was engaged in the business of bullion, dealing in gold & silver. The Revenue filed two appeals challenging the orders of the CIT(A) deleting additions aggregating to approximately ₹7.08 crore made in reassessment proceedings for AYs 2014-15 & 2017-18.
For AY 2014-15, the assessee filed its return declaring income of ₹20,66,451. The original assessment was completed u/s 143(3) after making only a minor addition of ₹50,000. Subsequently, based on suspicious transaction information, the assessment was reopened u/s 147.
The AO alleged that the assessee had received unsecured loans of ₹1,31,50,000 & share capital of ₹1,94,00,000. Holding that the assessee failed to establish the identity, creditworthiness & genuineness of the parties, the AO added both amounts u/s 68 r.w.s. 115BBE.
For AY 2017-18, the AO made additions of ₹3,40,00,000 as unexplained cash deposits & ₹1,42,50,000 as alleged accommodation entries. The CIT(A) deleted all the additions on factual as well as legal grounds. The Revenue therefore approached the Tribunal.
Issues before the Tribunal
The principal issue for AY 2014-15 was whether the CIT(A) was justified in deleting the unsecured loan & share capital additions when, according to the Revenue, the assessee had failed to discharge the burden imposed u/s 68.
