ITA Nos. 2552 & 2553/Del/2024 Dr. JagatNarainSubharti Charitable Trust (AYs: 2012-13 & 2013-14)

Parties Involved

Facts Summary

The assessee, Dr. JagatNarainSubharti Charitable Trust, filed its return of income for AY 2012-13 declaring a loss. The case was selected for scrutiny assessment, which was completed by order dated 30.03.2015. During the investigation, the assessing officer found that an amount of Rs.9,32,00,000/- received from M/s RAN International Pvt. Ltd. was unaccounted. Consequently, the case was reopened under section 148 of the Income Tax Act, 1961, and an addition of Rs.7,25,00,000/- was made, which was later deleted by the Ld. CIT(A). The department is now in appeal against this deletion.…

Legal Issues

• 1. Whether the Ld. CIT(A) erred in deleting the addition of Rs.7,25,00,000/- made by the Assessing Officer by treating the unsecured loans as unexplained cash credits u/s 68 of the I.T. Act, 1961.
• 2. Whether the Ld. CIT(A) erred in deleting the addition without appreciating the assessee's failure to establish the identity & creditworthiness of the lender.
• 3. Whether the Ld. CIT(A) erred in deleting the addition without appreciating the lender's insufficient income to advance such a large loan.
• 4. Whether the Ld. CIT(A) should have relied on other judicial pronouncements in addition to the judgments in favor of the appellant.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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