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ITO, WARD 2(3)(4) VS. SHIVA AND SHIVA

Case No: ITA No. 1945/DEL/2025
Court: Income Tax Appellate Tribunal, Delhi Bench
Bench: Delhi Bench
Date: 2/12/2026

Parties Involved

appellantITO, WARD 2(3)(4)
respondentSHIVA AND SHIVA

Facts Summary

The assessee, a partnership firm, filed its return of income for AY 2020-21 declaring income of Rs. 39,460/-. The case was selected for scrutiny assessment under CASS framework. The AO issued a notice u/s 143(2) requiring the assessee to submit details of source of addition made to capital account, details of unsecured loans, and ledger accounts of electricity expenses. The assessment concluded with an addition of Rs. 3,25,07,793/- on account of loans, capital introduced, and disallowance under section 40A(3). The assessee appealed before the Ld. CIT(A), who partly allowed the appeal. The Revenue is now in appeal before the Tribunal.

Decision in favour of

Assessee

Legal Issues

  • 1. Addition of Rs. 3,13,42,240/- u/s 68 of the Act on account of unexplained cash credits.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

4 precedents cited in this judgement.

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Version 2.0.1Last updated: October 2025
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