JS Infrastructure Vs ACIT (ITAT Mumbai)
The appeal before the Income Tax Appellate Tribunal, Mumbai, was filed by the assessee against the order passed by the Commissioner of Income Tax (Appeals) under Section 250 of the Income-tax Act, 1961 for Assessment Year 2017–18. The appeal was filed with a delay of two days, which was condoned by the Tribunal after accepting that the assessee had shown sufficient cause.
The assessee, a partnership firm engaged in construction and real estate development, had filed its return of income declaring nil income. Following a search and seizure action under Section 132 conducted in the case of another group, certain documents pertaining to the assessee were found. Based on satisfaction recorded by the Assessing Officer, notice under Section 153C was issued to the assessee, who again filed a return declaring nil income. During assessment proceedings, the Assessing Officer examined an unsecured loan of ₹50 lakh received from a private company and made an addition under Section 68, determining total income at ₹50 lakh.
The addition was upheld by the first appellate authority on the ground that the assessee failed to substantiate the genuineness of the loan as required under Section 68. Aggrieved, the assessee appealed before the Tribunal.
