ACIT vs. M/s Sparsh Property Private Limited

Parties Involved

Facts Summary

The assessee, M/s Sparsh Property Private Limited, filed its original return of income for AY 2016-17 declaring a net loss. A search and seizure action was carried out in the case of Filatex Group and related entities, revealing that the assessee had received loans from two entities, M/s ANM Fincap Private Limited and M/s Satsal Finlease Private Limited. The Assessing Officer (AO) treated Rs. 60,00,000/- of the total loan received as cash credits under Section 68 of the Income Tax Act, 1961. The assessee appealed before the Commissioner of Income Tax (Appeals-23), New Delhi, who allowed the appeal and deleted the addition. The Revenue is now in appeal before the Tribunal.…

Legal Issues

• 1. Addition of Rs. 60,00,000/- u/s. 68 of the Act
• 2. Disallowance of interest of Rs. 9,14,827/-
• 3. Addition of Rs. 31,250/- relating to deletion of commission

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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