ITA No.4209/Del/2024 Jalco Financial Services Pvt. Ltd.(AY: 2017-18)

Parties Involved

Facts Summary

The assessee, Jalco Financial Services Pvt. Ltd., is a domestic company engaged in trading shares, stocks, securities, and other instruments. It filed its return showing a total loss of Rs. 30,20,889/- for the assessment year 2017-18. The case was selected for complete scrutiny to verify expenses and low income compared to high loans/advances/investment in shares. The Assessing Officer (AO) made an addition of Rs. 5,16,00,000/- on account of unexplained cash credit under Section 68 of the Income Tax Act and disallowed Rs. 10,00,000/- on account of expenditure claimed under Section 37(1) of the Act. The assessee approached the National Faceless Appeal Centre (NFAC) and succeeded, leading the Revenue to appeal.…

Legal Issues

• 1. Whether the Ld. CIT(A)/NFAC has erred in deleting the addition of Rs.10,00,000/- under Section 37 of the Income Tax Act, 1961.
• 2. Whether the Ld. CIT(A)/NFAC has erred in deleting the addition of Rs.5,16,00,000/- on account of unexplained cash credit u/s 68 of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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