Best City Projects India Pvt. Ltd. Vs ITO (ITAT Delhi)
In the case before the Income Tax Appellate Tribunal (ITAT), Delhi, the assessee challenged the addition of ₹90 lakh made under Section 68 of the Income-tax Act, 1961 on account of alleged unexplained cash credit, claimed as advance received against sale of land. The matter originated from a search conducted on 15.09.2008, followed by assessment proceedings under Sections 153A/143(3). The addition was initially upheld by the Commissioner of Income Tax (Appeals) [CIT(A)]. Subsequently, the ITAT remanded the matter to the Assessing Officer (AO) directing reconsideration after providing adequate opportunity to the assessee to furnish evidence, including proof of genuineness of the transaction and creditworthiness of the payer.
During remand proceedings, the AO again made the addition after observing that the assessee failed to produce confirmations or supporting evidence from the counterparty. Notices issued under Sections 133(6) and summons under Section 131 to the alleged payer and its directors remained uncomplied or unserved. The assessee also failed to produce the concerned parties for verification. Consequently, the AO held that the transaction lacked genuineness and added ₹90 lakh under Section 68. The CIT(A) upheld the addition, noting that the assessee failed to comply with the ITAT’s directions and did not substantiate its claim with fresh evidence.
