The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has deleted the income tax additions on bogus transactions on the grounds that the genuineness of transactions was established.
The bench of Saktijit Dey (Vice President) and Narendra Kumar Billaiya (Accountant Member) has observed that the assessee has furnished all the documentary evidence by establishing the identity, creditworthiness and genuineness of the transactions and discharging completely the initial onus cash upon it by the provisions of Section 68 of the Income Tax Act.
The assessee electronically filed its return of income declaring total income under the normal provisions of the Income Tax Act and declared book profit at Nil.
The AO examined the facts independently and with due diligence it was found that there was a failure on the part of the assessee to disclose fully and truly all material facts necessary for its assessment for the year under consideration. A reason to believe was formed and notice under section 148 of the Income Tax Act was issued to the assessee.
The tribunal noted that the assessee has furnished clinching evidence before the AO during the course of the original assessment proceedings to prove the transactions. Therefore, by no stretch of imagination it can be that the assessee failed to disclose truly and fully all material necessary for its assessment for the year under consideration.
The tribunal quashed the reassessment notice under section 148 of the Income Tax Act.
Case Details
Case Title: Savroli Finvest Limited Versus ITO
Case No.: I.T.A. No. 282/Mum/2023
Date: 19/03/2025
Counsel For Appellant: Ashwani Kumar
Counsel For Respondent: Dr. Kishor Dhule
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