C.R. Investments Vs. ACIT, Circle-28(1), Delhi

Parties Involved

Facts Summary

The case pertains to the assessment year 2018-19, where the assessee, C.R. Investments, appealed against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [CIT(A)/NFAC], Delhi. The CIT(A)/NFAC had upheld the addition of Rs.40,53,468/- as unexplained cash credits under section 68 r.w.s. 115BBE of the Income-tax Act, 1961, treating the assessee’s exempt dividend income as unexplained. The Revenue argued that the departmental authorities had found serious irregularities in the payment of such dividends during a search in the 'payee' group. However, the assessee maintained that it had filed all relevant details in support of its dividend income and there was no proven nexus of irregularity to warrant the addition.…

Legal Issues

• 1. Whether the addition of Rs.40,53,468/- as unexplained cash credits under section 68 r.w.s. 115BBE of the Income-tax Act, 1961 is justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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