DCIT, Circle : 16 (2), New Delhi. Vs. M/s. Prakausali Investment India (Pvt.) Ltd., C 41, Mayfair Garden, New Delhi
January, 11th 2021
BEFORE SHRI N. K. BILLAIYA, ACCOUNTANT MEMBER and MS. SUCHITRA KAMBLE, JUDICIAL MEMBER
I.T.A. No. 3126/Del/2017 (A.Y 2010-11)
(THROUGH VIDEO CONFERENCING)
Appellant by Ms. Sushma Singh [CIT] – DR
Respondent by Ms. Kanika Jain, Adv.
This appeal is filed by the Revenue against the order dated 30.01.2017 of the Commissioner of Income Tax [Appeals]-7, New Delhi for Assessment Year 2010-11.
2. The grounds of appeal are as under:-
1. Whether on facts and in circumstances of the case, the Ld. CIT(A) is legally justified in deleting addition of Rs. 1,56,10,00,000/- u/s 68 of the Income Tax Act 1961 (the Act) even when the assessee had failed to discharge its initial onus to prove the creditworthiness of the investors u/s 68 of the Act before Assessing Officer (the AO) as well before the Ld CIT(A)?
2. Whether on facts and in circumstances of the case, the Ld. CIT(A) is legally justified in deleting addition of Rs. 1,56,10,00,000/- u/s 68 of the Act by holding that creditworthiness of investors was proved by mere production of papers relating to identity of investors, copies of bank statement, use of banking channel, confirmations and KYC forms of some of the investors, proof of TDS by ignoring the ratio decidendi as laid down by Hon’ble Delhi High Court on the issue in the cases of CIT vs. N.R. Portfolio (P) Ltd. (2014) 2 ITR-OL-68, CIT vs. Nipun Builders and Developers (P) Ltd. (2013) 350 ITR 407 and CIT vs. Navodaya Castles Pvt. Ltd. (2014) 367 ITR 306 on application of section 68 of the Act?