ACIT VS 21ST CENTURY E-SOLUTIONS

Parties Involved

Facts Summary

The assessee company, 21ST CENTURY E-SOLUTIONS PVT. LTD., filed its return declaring an income of Rs. 37,15,070/- for A.Y. 2015-16. The case was selected for scrutiny through CASS. The assessee is engaged in the trading of mobile handsets. The Assessing Officer (AO) noted that the assessee had taken unsecured loans of Rs. 3,75,00,000/- from five different parties during the year. To verify the genuineness of the transactions and creditworthiness of the lenders, the AO issued notices under section 133(6) as the confirmations received from the assessee and the creditors were not complete and creditworthiness of the parties was not fully established. After considering the assessee’s reply, the AO added the entire amount of Rs. 3,75,00,000/- under section 68 of the Act. Aggrieved, the assessee preferred an appeal before the Commissioner of Income Tax, New Delhi [Ld. CIT(A)], who deleted the addition after considering additional evidences submitted by the assessee.…

Legal Issues

• 1. Whether the Ld. CIT(A) has erred in deleting the addition of Rs. 3,75,00,000/- for A.Y. 2015-16 on account of unsecured borrowings u/s 68 of the IT Act made by AO though the assessee could not prove the genuineness and creditworthiness of transactions during the course of assessment proceedings.

Judgment Outcome

Decided in favour of Assessee.

Similar Judgements

• Income Tax Officer-27(3)(1), Mumbai - 400706 Vs. Savla Associates

  Mumbai benchAY 2020-21Dismissed

• M/s Singla Realters Ltd Vs. The I.T.O

  Delhi ‘F’ Bench benchAY 2014-15Partly Allowed

• ACIT vs Techno FAC Contracts Private Ltd

  Delhi Bench ‘G’, New Delhi benchAY 2017-18Dismissed

• Nouvelle Securities Pvt Ltd Vs. The A.C.I.T

  Delhi ‘E’ Bench benchAY 2016-17Dismissed

• The ACIT, Circle -7(1), New Delhi Vs M/s. Dayal Steel P. Ltd.

  Delhi Bench ‘B’, New Delhi benchAY 2012-13Dismissed

• M/s. R.M. Bhuther and Co. Vs. National Faceless Appeal Centre

  Mumbai Bench benchAY 2017-18Allowed