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ITA No.9692/Del/2019

Case No: 9692/Del/2019
Court: Income Tax Appellate Tribunal, Delhi Benches ‘F’
Date: 1/23/2026

Parties Involved

appellantACIT, Circle 8 (2)
respondentM/s. ESS AAR Automotive Pvt. Ltd.

Facts Summary

The assessee, M/s. ESS AAR Automotive Pvt. Ltd., filed its return of income declaring income of Rs.39,54,870/- for the Assessment Year 2013-14. During the assessment proceedings, the Assessing Officer (AO) observed that the assessee had obtained share application money of Rs.2.5 crores in cash from M/s. Keyplayer Realcon Pvt. Ltd., which was subsequently forfeited. The AO made an addition of Rs.2.5 crores to the assessee's income under section 68 of the Income-tax Act, 1961, considering it as unexplained funds. The assessee appealed against this order before the Commissioner of Income Tax (Appeals)-34, New Delhi, who allowed the appeal and deleted the addition. Aggrieved by this, the Revenue filed an appeal before the Income Tax Appellate Tribunal.

Decision in favour of

Assessee

Legal Issues

  • 1. Whether the addition of Rs.2.5 crores made by the AO under section 68 of the Income Tax Act, 1961, is justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

3 precedents cited in this judgement.

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