Unexplained credit score will proceed to extend in absence of proof to show elevated quantity due: ITAT

Unexplained credit - Lack of evidence - Prove increased amount due - ITAT - Taxscan

The Delhi Bench of the Revenue Tax Appellate Tribunal (ITAT) has held that within the absence of proof to show the elevated quantity payable would proceed aside from unexplained credit score.

The assessee, M/s. Mahamaya Exports Pvt. Ltd challenged the Commissioner of Revenue Tax (Appeals)-31 [CIT (Appeals)] New Delhi, dated 20.12.2017 for the evaluation 12 months 2013-14.

The assessee is engaged within the enterprise of improvement of residential and industrial initiatives at varied locations within the state of Haryana. The Assessing Officer noticed that the assessee has proven a steadiness quantity of Rs 148,93,34,700/- within the account of sundry collectors as on 31 March 2013.

The assessee was required to furnish the small print of such miscellaneous collectors together with a duplicate of the accounts of the collectors and affirmation from the involved collectors together with the character of the transaction.

It was said by the assessee that out of Rs 148,93,34,700/- Rs 8.40 crore was acquired upfront in opposition to sale of property and the steadiness has arisen as Rs 140,53,34,700/-. Legal responsibility as a consequence of cancellation of the settlement to promote the property.

The modus operandi adopted by the assessee concluded that the assessee has largely averted the tax legal responsibility by decreasing the revenue, and the excellent steadiness in varied collectors as unexplained money credit score of the assessee Rs 148,93,34,700/- It’s believed. On attraction, CIT (Appeals) added Rs 146,48,34,700/- to the extent of Rs.146,48,34,700/- because the assessee had acquired solely Rs.2.45 crore within the earlier years, which was cleared by CIT (Appeals) from excellent sundry collectors. present evaluation 12 months.

A quorum of Mr. Shamim Yahya, Accountant Member and Mr. Challa Nagendra Prasad, Judicial Member noticed that as per part 68, the onus was on the assessee to show not solely the supply but in addition the character of credit score. From the small print furnished, the Tribunal noticed that there isn’t any credible foundation for the elevated quantity payable for the land and the character of such elevated credit score stays unclear.

The Tribunal upheld the order of the CIT (Appeals) and dismissed the attraction by the assessee. Ms. Rinku Singh appeared for the division whereas nobody appeared for the assessee.

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Mahamaya Exports Vs ACIT,

Case No.: .ITA No. 1062/Del/2018

Date of Resolution: 24.08.2022

Quote: 2022 TaxScan (ITAT) 1361

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