ITA No.2591/MUM/2024

Parties Involved

Facts Summary

The assessee, ECL Finance Limited, had filed its original return of income for the assessment year 2013-14 declaring a total income of Rs.197,44,86,190/-. Subsequently, the case was selected for scrutiny and assessment order u/s. 143(3) was passed on 29/11/2017 determining the total income at Rs.252,39,54,290/-. Credible information was received from the Deputy Director of Income Tax (Inv.), Unit – 1(4), Kolkata on 17/03/2020 regarding high value transactions with the assessee which were used for layering/parking of the funds. The assessee had made a transaction amounting to Rs.2,50,00,000/- with a fraudulent company, which was one of the entities of M/s. Standard Financial Consultants Pvt. Ltd. Accordingly, the case was reopened by the Jurisdictional Assessing Officer (JAO) u/s. 147 of the Income Tax Act. The Ld. AO held that the assessee had availed accommodation entry from the paper entity Eversight Tradecomm Pvt. Ltd. in the guise of margin money. The assessee filed appeal before the Ld. CIT (A) who deleted the addition on the ground that the assessee had established the identity of the parties, their creditworthiness, and the genuineness of the transaction. Aggrieved by the order of the Ld. CIT (A), the present appeal has been filed by the revenue.…

Legal Issues

• 1. Whether the Ld. CIT(A) was justified in deleting the addition of Rs.2,50,00,000/- made by Assessing Officer u/s 68 of the Act.
• 2. Whether the Ld. CIT(A) is justified in allowing the appeal filed by the assessee and deleting the addition of Rs.2,50,00,000/- being the addition made u/s 68 of the IT. Act 1961 even though the creditworthiness and genuineness of the transaction was not established?

Judgment Outcome

Decided in favour of Revenue.

Similar Judgements

• ACIT VS 21ST CENTURY E-SOLUTIONS

  Delhi Bench ‘A’, New Delhi benchAY 2015-16Dismissed

• Assistant Commissioner of Income Tax vs. Bijwasan Realty One P. Ltd.

• Assistant Commissioner of Income Tax vs. Bijwasan Realty One P. Ltd.

  Delhi Bench benchAY 2018-19Dismissed

• Income Tax Appellate Tribunal, Mumbai Benches, Mumbai

  Mumbai bench

• ACIT VS. DEE FACES HERBAL PVT. LTD

  Delhi Bench ‘B’ New Delhi benchAY 2011-12Dismissed

• ACIT vs Techno FAC Contracts Private Ltd

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