V M.V Industries Vs ITO, Ward 1(2), Alwar

Parties Involved

Facts Summary

The assessee, V M.V Industries, is a partnership firm. For the assessment year 2016-17, the Assessing Officer (AO) reopened the assessment under section 148 of the Income Tax Act, 1961, and completed the reassessment under section 147 read with section 144B, making an addition of Rs. 27,90,000 under section 68 of the Act. This addition comprised Rs. 13,50,000 on account of capital introduced by a partner and Rs. 14,40,000 on account of an unsecured loan. The assessee challenged the assessment order before the Commissioner of Income Tax (Appeals) (CIT(A)), but did not file any details despite multiple opportunities and adjournment requests. The CIT(A) upheld the additions made in the assessment order. The assessee then filed an appeal before the Income Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Whether the addition of Rs. 27,90,000 under section 68 of the Act is justified?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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