Income Tax Officer, Ward 4(2) Vs. Panel Commerce Pvt. ltd.
Parties Involved
Facts Summary
The assessee, Panel Commerce Pvt. Ltd., is engaged in the business of trading in equity shares and finances. The assessee filed its return of income for the assessment year 2013-14 declaring a total income of ₹27,180/-. The Assessing Officer (AO) received information indicating that the assessee had transacted with a shell company, M/s Brahma Tradelinks Pvt. Ltd., which lacked real business activity. The AO noted that the transactions' genuineness and the identity and creditworthiness of the party could not be verified. Consequently, the AO reopened the assessment under section 147 of the Act and issued a notice under section 148. The AO made additions totaling ₹6,19,60,000/- on account of the sale of shares and ₹6,55,000/- on account of cash deposits. The Commissioner of Income Tax (Appeals) (CIT(A)) partly allowed the assessee's appeal by confirming an addition of ₹1,25,00,000/- and deleting the remaining addition of ₹4.94 crores. Both the Revenue and the assessee filed appeals against this order.…
Decision in favour of
Partly Assessee / Partly Revenue
Legal Issues
- 1. Deletion of ₹4.94 crores addition by the CIT(A) on account of unexplained cash credit.
Judgment Outcome
Decided in favour of Partly Assessee / Partly Revenue.
Precedents Relied Upon
5 precedents cited in this judgement.
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