2017 (9) TMI 1697 - HC - Income Tax

Addition u/s 68 - whether the ITAT was justified in confirming the order of the Commissioner of Income Tax (Appeals) which deleted the addition u/s 68 only on the ground that the payments to the creditors have been made by the Assessee in the subsequent years - Held that - The fact remains that the explanation offered by the Assessee regarding repayment to the creditors in subsequent years was accepted by the Revenue. Therefore the Court is not inclined to examine the question as urged. Nevertheless the question is left open for consideration in an appropriate case.

Summary

The Delhi High Court dismissed the appeal by the Revenue against the ITAT order regarding the addition of Rs. 21,64,518 under Section 68 of the Income Tax Act for the Assessment Year 2007-08. The ITAT's decision to delete the addition was upheld as the Assessee's explanation for repayment to creditors in subsequent years was accepted by the Revenue. The Court did not examine the question further but left it open for consideration in the future.