Dy. CIT, Central Circle-27, New Delhi Vs. M/s Debonair Tie-up Pvt. Ltd.

Parties Involved

Facts Summary

The assessee, M/s Debonair Tie-up Pvt. Ltd., is a company engaged in trading in shares, securities, debentures, and other investments. The return of income was filed on 30.09.2012 declaring a total income of Rs.43,187/-. The assessment was completed on 02.03.2015 with an addition of Rs.17,07,86,833/- on account of an unsecured loan. In the first appeal, an addition of Rs.5,41,000/- was sustained, and the balance was deleted. The case was reopened on 18/03/2019 under section 148 based on information from the Investigation Wing about undisclosed funds of Rs.15,00,000/- transferred by the assessee. A reassessment order was passed on 29.12.2019, adding Rs.4,50,00,000/- under section 68 for an alleged accommodation entry. The assessee appealed before the Ld. CIT(A), who allowed the appeal, leading to the current appeal by the Revenue.…

Legal Issues

• 1. Whether the Ld. CIT(A) erred in deleting the addition of Rs.4.5 Crores on account of unexplained cash credits without recording any finding.
• 2. Whether the CIT(A) erred in resting his decision on the premise that if the sale proceeds are received through banking channels and the buying company files its return of income, the cash credit is genuine.
• 3. Whether the Ld. CIT(A)'s finding that the appellant was under no obligation to undertake a physical verification of the buying company is perverse.
• 4. Whether the Ld. CIT(A) failed to record any finding against the fact that the stake held by the assessee in certain companies did not undergo any change during the relevant Previous Year.
• 5. Whether the order of the CIT(A) is perverse, erroneous, and not tenable on facts and in law.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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