2026 (2) TMI 686

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....ment order dated 12.12.2018 passed u/s 143(3) r.w.s. 147 of the Income Tax Act, 1961 pertaining to Assessment Year 2014-15. The assessee has also filed cross objection. The appeal of the Revenue and Cross Objection of the assessee, for the purposes of convenience were heard together and are being disposed of by this common order. The word 'Act' herein this order would mean Income Tax Act, 1961. 2. Contesting the impugned order of ld. CIT(A) dated 20.11.2023, the Revenue has raised following grounds of appeal:- "1. Whether on facts and circumstances of the case and in law, the Ld. CIT(A)-3, Noida has erred in deleting the addition of Rs. 15,00,00,000/- made by the Assessing Officer u/s 68 of the Income Tax Act on account of unexp....

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.... recorded by the J.C.I.T.(OSD), Central Circle Ghaziabad, without there being any order under section 120(4)(b) of the Income Tax Act, 1961, therefore, the J.C.I.T. (OSD), Central Circle Ghaziabad cannot act as an Assessing Officer defining under section 2(7A) of the Income Tax Act, 1961 and consequent the impugned reassessment order is illegal and liable to be quashed. 2. That any other relief or reliefs as your honour may deem fit in the facts and circumstances of the case, be granted. 4. Brief facts of the case are that the appellant assessee is a company engaged in the business of export of meat. The appellant filed original Return of Income under section 139(1) of the Act on 27.09.2014 declaring total income at Rs. 32,32,70....

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....pellate Authority after considering arguments made by the assessee, documents produced, remand report of the ld. AO, deleted the addition observing as under, in para 5.1.26 on page- 45 to 46 of his order:- "Conclusion 5.1.26 The issues in the case can be summarized as under: 1. Addition u/s 68 has been made by the AO on the basis of trial balance impounded during the course of survey which showed that 23 entities had invested in the shares of the assessee company. 2. The addition was made during the first year of business and the AR has contended that the said addition is not sustainable in view of the judgments of Hon'ble Supreme Court and jurisdictional High Court discussed in the body of the order ....

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....wer authorities. It was argued that the assessee has satisfied the three conditions i.e. to prove the identity, creditworthiness and genuineness of transaction prescribed under section 68 of the Act. It was stressed that this was the first year of the company and hence there was no case for making any addition under section 68 of the Act. In support of its arguments, the ld. AR reiterated reliance upon judicial precedents covering the subject. The ld. AR also argued in favour of its Cross Objection regarding the maintainability of its grounds of appeal. 6. The ld. DR drew our attention to para 5.3. of the order of ld. AO so as to submit that there was non-compliance to summons under section 131 issued for verification of creditworthiness....