ITA No.2745/M/2024

Parties Involved

Facts Summary

Shri P. K. Vinod Kumar, Asst. Commissioner of Income Tax, Circle- 2(1)(1), Mumbai filed a penalty appeal against M/s. Better value Leasing & Finance Ltd. for the assessment year 2018-19. The assessee filed its return of income on 28.09.2018 reporting total income of Rs.1,18,08,600/-. The case was selected for scrutiny and statutory notices were issued to the assessee u/s.142(1) and 143(2) of the act. In response to said notices, the assessee filed an adjournment letter due to the office being closed due to the COVID-19 lockdown. The Ld.AO did not grant the opportunity to the assessee and completed the assessment by making additions of Rs.1,29,00,394/- disallowing the professional/consultancy receipts as not incurred for the purposes of the business of the assessee u/s 37 of the Act. The Ld.AO also disallowed sum of Rs. 108,88,62,567/-as unexplained cash credits u/s.68 of the act since assessee failed to discharge the primary onus u/s.68. The Ld.AO disallowed the interest paid by the assessee on loans amounting to Rs.6,66,49,584 claimed as allowable expenditure by the assessee. Aggrieved by the order of the Ld.AO, assessee preferred appeal before the Ld.CIT(A)/NFAC. The Ld.CIT(A) upon perusal of documents/evidences allowed the claims made by the assessee and deleted additions by observing that assessee discharged its onus casts upon it by providing proof of identity, creditworthiness and genuineness of the transactions. In respect of the disallowances deleted pertaining to pro…

Legal Issues

• 1. Whether the evidences furnished by the assessee were properly verified by the Ld.CIT(A)/NFAC?
• 2. Whether the appeal was instituted before the NFAC/Ld.CIT(A) at the relevant date mentioned in para 7.2.1 by the first appellate authority?

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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