ITA Nos. 1454, 1506 & 1590/KOL/2025

Parties Involved

Facts Summary

The assessee, Sapphire Global Finance (P) Ltd., filed its return of income for A.Y. 2014-15 declaring a total income of ₹3,280/-. The case was reopened by the Assessing Officer (AO) who issued a notice u/s 148 of the Income-tax Act, 1961, alleging that the assessee had received ₹67 lacs which had escaped assessment. The AO issued notices u/s 143(2) and 142(1) and the assessee provided details and evidences. The AO noted that the assessee received money from other companies and passed on funds to beneficiaries, Khetan Tracon P. Ltd. and Prateek Plastometals P. Ltd. The AO added these amounts to the income of the assessee u/s 68 of the Act. The ld. CIT (A) allowed the assessee's appeal by deleting the addition, observing that the transactions were genuine and through banking channels.…

Legal Issues

• 1. Deletion of addition by the ld. CIT (A) as made by the ld. AO u/s 68 of the Income-tax Act, 1961.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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