THE INCOME TAX APPELLATE TRIBUNAL DELHI “E” BENCH: NEW DELHI BEFORE SHRI SUDHIR KUMAR, JUDICIAL MEMBER &

SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.3294/Del/2025 [Assessment Year: 2018-19]

ACIT, Circle 25(1), Room vs M/s. Westcourt Hospitality No. 192A, CR Building, Pvt. Ltd.

IP Estate New-Delhi. 4391, B-5 & 6, Vasant Kunj, 110002 New Delhi-110070.

PAN-AAACW8734G APPELLANT RESPONDENT ITA No. 3351/Del/2025 [Assessment Year: 2018-19]

M/s. Westcourt Hospitality vs ACIT, Circle 25(1),Room Pvt. Ltd. No. 192A, CR Building, IP

4391, B-5 & 6, Vasant Estate New-Delhi. 110002 Kunj, New Delhi-110070.

PAN-AAACW8734G APPELLANT RESPONDENT Revenue by Ms. Amisha S. Gupta, CIT DR Assessee by Shri C.S. Anand, Adv. Date of Hearing 04.11.2025 Date of Pronouncement 30.12.2025

ORDER

PER MANISH AGARWAL, AM:

The present appeal is filed by the Revenue against the order dated 04.04.2025 of Ld. Commissioner of Income Tax (A), National Faceless Appeal Centre (“NFAC”), Delhi [“Ld. CIT(A)”] in Appeal No. NFAC/2017-18/10008779 passed u/s 250 of the Income Tax Act,1961 [“the Act”] arising out of the assessment order dated

09.02.2021 passed u/s 143(3) of the Act pertaining to Assessment Year 2018-19.

2. Brief facts of the case are that assessee is a Private Limited company incorporated on 3.3.2009 and since incorporation is engaged in the business of consultancy in real estate projects. Return of income was filed on 9.10.2018 declaring current year’s loss of Rs.1,99,79,324/-. The case was selected for scrutiny to verify ‘A’ investments/ advances/ loans and ‘B’ business loss. Statutory notice u/s 143(2) of the IT Act was issued followed by notices u/s 142(1) alongwith questionnaire. In response, assessee furnished the requisite details and assessment order was passed at a total income of Rs.43,72,80,000/- against the returned loss of Rs.1,99,79,324/- by making additions of Rs. 43,72,80,000/- as unexplained cash credit u/s68 of the IT Act. Further disallowance of expenses of Rs.2,99,000/- towards increase in share capital was made besides making disallowance of Rs. 1,78,50,000/- by holding the same as incurred for non-business purposes.

3. Against the said order, the assessee preferred appeal before Ld. CIT(A), who partly allowed the appeal of the assessee wherein the addition made u/s 68 was deleted coupled with the disallowance of expenses of Rs. 2,99,000/- and confirmed the disallowance of Rs.

1,78,50,000/- made by the AO.

4. Aggrieved by the said order, assessee and the Revenue both are in appeal before the Tribunal. The revenue has taken following grounds of appeal:-

“1. Whether, on the facts and circumstances of the case and in law the Ld.

CIT(А) has erred in deleting the addition of Rs. 2,99,000/- on account of disallowance of expenses for increase of share capital.

2. Whether, on the facts and circumstances of the case and in law the Ld.

CIT(A) has erred in deleting the addition of Rs. 43,72,80,000/- on account of unexplained cash credit u/s 68 of the Act.

3. The appellant craves leave to add, alter, amend, append or delete any of the above grounds of appeal.”

5. The assessee has taken following grounds of appeal:

“1. That on the facts/circumstances of the case and in law, the expenses of Rs.1,12,00,000/- incurred by the assessee towards the services taken from M/s Westcourt Real Estate Pvt. Ltd. deserves to be allowed.

2. That on the facts/circumstances of the case and in law, the expenses of Rs.51,50,000/- incurred by the assessee towards the services taken from M/s Westcourt Real Estate Pvt. Ltd. deserves to be allowed.

3. That on the facts/circumstances of the case and in law, the expenses of Rs.15,00,000/- incurred towards the services taken from M/s Studio U Plus Advisory Pvt. Ltd., deserves to be allowed.

NOTE:

The assessee craves leave to amend/modify aforementioned grounds of appeal and/or to raise additional grounds) of appeal, at any time prior to /

during the course of appellate proceedings.”

6. First, we take the Revenue’s appeal in ITA No.3294/Del/2025.

ITA No. 3