SAUMYAAFINCAP,AHMEDABAD vs. ASST. UNIT. INCOME TAX DEPT. (PRESENT JURI.ITO, WARD 1(1)(3), AHEMEDABAD), VIJALPUR,AHMEDABAD

ITA 957/AHD/2026Status: DisposedITAT Ahmedabad23 September 2026AY 2015-167 pages
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What did the Tribunal hold?

The Tribunal held that if a loan amount is repaid, it cannot be treated as an accommodation entry, citing a jurisdictional High Court decision. Therefore, the addition made by the AO on account of bogus loan and unexplained expenditure was deleted.

What were the facts?

The Assessing Officer (AO) reopened the assessee's case based on information that the assessee had taken an accommodation entry of Rs. 17,00,000/- in the form of a bogus loan. The AO was not satisfied with the identity, creditworthiness, and genuineness of the loan transactions and added the loan amount and 1% thereof as unexplained cash credit and expenditure. The CIT(A) dismissed the assessee's appeal.

What were the issues?

Whether the reopening of the assessment was valid and whether the loans taken by the assessee were genuine or accommodation entries.

Which sections of the Income-tax Act were involved?

Section 147,Section 144B,Section 148,Section 143(1),Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD

Before: SHRI SANJAY GARG & SHRI NARENDRA PRASAD SINHA

For Appellant: Shri Sulabh Padshah, AR
For Respondent: Shri Amit Pratap Singh, SR-DR
Hearing: 15.07.2026Pronounced: 23.09.2026

PER NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER:

This appeal is filed by the Assessee against the order of National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “CIT(A)”] dated 30.01.2026 for the Assessment Years (A.Y.) 2015-16 in the proceeding u/s 147 r.w.s 144B of the Income Tax Act [hereinafter referred as “the Act”].

2.

The brief facts of the case are that the assessee had filed its return of income for AY 2015-16 on 21.09.2015 declaring total income of Rs.42,53,750/-, which was processed u/s. 143(1) of the Act. Subsequently, the AO had reopened the case on the basis of information Saumyaafincap V

The order continues below.

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