2015 (8) TMI 1509 - HC - Income Tax

Addition u/s 68 - unexplained cash credits - HELD THAT - As concurrently held by both the CIT(A) as well as ITAT that the creditors in question were having running accounts with the Assessee and that the balance belonged to the earlier years. There was no fresh credit during the year in question. The Court finds no substantial question of law arises in the above facts as far as this issue is concerned. Addition on account of notional interest on interest free loans/advances - HELD THAT - ITAT has rightly observed that there is no provision for taxing notional income as explained by the Supreme Court in Excel Industries 2013 (10) TMI 324 - SUPREME COURT .

Summary

The Delhi High Court condoned a 64-day delay in re-filing an appeal. The Revenue's appeal against an ITAT order for the AY 2009-10 was dismissed. The first issue of unexplained cash credits was rejected as the creditors had running accounts with the Assessee. The second issue of notional interest on interest-free loans was also dismissed as there is no provision for taxing notional income.