Tribunal upholds deletion of income addition under Section 68 for AY 2012-13

The Tribunal upheld the Ld. CIT(A)'s decision to delete the addition under Section 68 of the Income Tax Act for the Assessment Year 2012-13. The Revenue's appeal challenging the deletion of an addition of Rs. 3,03,90,000 was dismissed as the Assessing Officer failed to provide adverse findings or independently verify the transactions. The Tribunal found that the assessee had submitted necessary documents and the Assessing Officer did not conduct proper inquiries. The appeal and Cross Objection were rejected, affirming the deletion of the addition.

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Issues:
Appeal against deletion of addition under Section 68 of the Income Tax Act for Assessment Year 2012-13.

Analysis:
The Appellate Tribunal ITAT Delhi heard an appeal and Cross Objection against the order of Ld. CIT(A)-4, New Delhi dated 29/4/2016 for the Assessment Year 2012-13. The Revenue's appeal challenged the deletion of an addition of Rs. 3,03,90,000 under Section 68 of the Income Tax Act. The facts revealed that the assessee company, engaged in building development, faced scrutiny assessment resulting in the addition of the aforementioned amount by the Assessing Officer. However, the Ld. CIT(A) later deleted these additions, leading to the Revenue's appeal.

During the proceedings, the Revenue argued that the Assessing Officer was justified in making the addition due to the lack of proof of transaction genuineness. On the contrary, the assessee's counsel contended that relevant documents, including lender details and confirmations, were provided to support the claim. The counsel highlighted the business downturn faced by the assessee due to industry challenges. The Tribunal noted that the Assessing Officer did not provide adverse findings for one party and failed to discuss the relevant transaction, resulting in deletion of the addition by Ld. CIT(A).

Regarding another party, the Tribunal found that the assessee had submitted all necessary documents and responses to notices under Section 133(6) of the Act. The Ld. CIT(A) observed that the Assessing Officer did not conduct independent inquiries into the parties involved. The Tribunal agreed with the Ld. CIT(A) that the assessee had provided evidence but the Assessing Officer failed to verify independently, leading to the deletion of the addition. The Tribunal dismissed the Revenue's appeal and the Cross Objection of the assessee as the appeal was already rejected.

In conclusion, the Tribunal upheld the Ld. CIT(A)'s decision to delete the addition under Section 68 of the Income Tax Act for the Assessment Year 2012-13. The judgment was delivered on 31st December, 2021, after a Virtual Hearing in the presence of both parties.

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