ITA No. 8211/Del/2025, A.Y. 2016-17

Parties Involved

Facts Summary

The case involves an appeal against the order dated 16.09.2025 of the Commissioner of Income Tax (Appeals)/NFAC, New Delhi, arising out of the assessment order dated 11.12.2018 of the Assessing Officer / ACIT, Central Circle-7(1), New Delhi. The assessee filed a return of income of Rs. 51,70,68,180/- and a revised return declaring income of Rs. 52,39,14,040/-. The assessee was asked to submit evidence under section 68 of the Act regarding unsecured loans of Rs. 60,97,22,000/-. The assessee submitted confirmations/copies of ITR and balance sheet but did not submit copies of bank statements. The Assessing Officer made additions of Rs. 44,05,22,000/-, Rs. 6,26,869/-, Rs. 86,00,000/-, Rs. 49,07,000/- and Rs. 3,73,98,925/- under section 68 of the Act as unexplained credits. The assessee appealed to the Commissioner of Income Tax (Appeals)/NFAC, New Delhi, which allowed the appeal. The revenue then filed an application for condonation of delay and an appeal against the order of the Commissioner of Income Tax (Appeals)/NFAC.…

Legal Issues

• 1. Additions under section 68 of the Act amounting to Rs. 44,05,22,000/-
• 2. Disallowance of Directors' Remuneration amounting to Rs. 86,00,000/-
• 3. Disallowance under section 40A(2)(b) of the Act amounting to Rs. 49,07,000/-
• 4. Addition of Rs. 3,73,98,925/- on account of decline in Gross Profit Rate

Judgment Outcome

Decided in favour of Revenue.

Precedents Relied Upon

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