ACIT Vs Prenit World LLP (ITAT Delhi)
The case arose from reassessment proceedings where the Revenue challenged deletion of additions under section 68 relating to unsecured loans. The issue before the Tribunal was whether the loans reflected unexplained cash credits, given doubts about genuineness and creditworthiness. The assessee had furnished confirmations, and lenders duly responded to notices under section 133(6). Crucially, the Assessing Officer’s remand report acknowledged these facts without adverse remarks. Relying on this, the Tribunal held that once the AO himself submitted a favourable remand report, the Revenue could not be treated as aggrieved. Accordingly, the appeal was dismissed and the assessee’s cross‑objection rendered infructuous.
FULL TEXT OF THE ORDER OF ITAT DELHI
This Revenue’s appeal ITA No. 1392/Del/2025 along with assessee’s cross objections C.O. Nos. 196/Del/2022, in A.Ys. 201112, arise against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s order dated 02.12.2024, passed in DIN 85 Order No. ITBA/NFAC/S/250/2024-25/ 1070807444(1), involving proceedings under section 147 r.w.s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as the Act’).
Heard both the parties at length. Case files perused.
2. The Revenue pleads the following substantive ground in appeal ITA No. 1392/Del/2025:-
“1. Whether on the facts and circumstances of the case the Ld. CIT(A) was justified in deleting the addition of Rs. of Rs.2,50,76,931/ – on account of addition made by the Assessing officer u/ s 68 even though the onus of evidence regarding unsecured loan has not been discharged including loan confirmation, creditworthiness of lender party despite opportunity given by the AO repeatedly.
2. Whether on the facts and circumstances of the case the Ld. CIT(A) was justified in deleting the addition of Rs. 1,50,26,571/ – as it is apparent that loan taken by M/s Prenit World LLP of Rs. 1,50,26,571/ – was not a genuine transaction rather it was assessee’s own money rotating by the bogus penny stock company named Shardaraj Tradefin Ltd.
3. Whether on the facts and circumstances of the case the Ld. CIT(A) was justified in deleting the addition of Rs. 3,51,05,042/ – as it is apparent that loan taken by M/s Prenit World LLP of Rs. 3,51,05,042/ – was not a genuine transaction rather it was assessee’s own money rotating by the bogus penny stock company named the Konark Commerce & Industries Ltd.
4. Whether the Ld. CIT (A) was justified in deleting the additions as the Ld. CIT(A) has not examined the creditworthiness and capacity of the alleged company for providing the loans to the assessee.
5. The appellant reserves right to add, alter or amend the grounds of appeal on or, before the date of disposal of appeal.”
3. We not advert to the Revenue’s sole endeavor in its instant appeal seeking to revive the Assessing Officer’s action inter alia making section 68 unexplained cash credits addition in the assessee’s hands which stands reverse in the CIT(A) detailed discussion.
