I.T.O.WARD.6(2), KOLKATA, KOLKATA vs. GANDEVI COMMERCE PVT. LTD., KOLKATA

ITA 1622/KOL/2026Status: DisposedITAT Kolkata21 September 2026AY 2016-1721 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that Section 68 applies to sums credited, not sums advanced. It also noted that the assessee received repayment of the loan, and no adverse findings were made in subsequent assessment years. The categorization of a company as 'shell' without justification was insufficient to sustain the addition.

What were the facts?

The assessee advanced a loan of Rs. 2,00,00,000/- to M/s. Saffire Exports & Agency Pvt. Ltd. The Assessing Officer reopened the case, suspecting the transaction to be a sham due to fund layering and common directorships, and added the amount under Section 68 as an unexplained cash credit.

What were the issues?

Whether the addition under Section 68 for a loan advance is justified when the transaction involves repayment and no adverse findings exist in other assessment years? Whether a company's categorization as 'shell' without further justification warrants an addition?

Which sections of the Income-tax Act were involved?

Section 68,Section 147,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA ‘B’ BENCH AT KOLKATA

Before: SHRI GEORGE MATHAN & SHRI RAKESH MISHRA

For Respondent: DR. Assessee represented by : Manoj Kataruka, Advocate

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

This appeal filed by the Revenue is against the order of the Commissioner of Income Tax (Appeals)-NFAC, Delhi [hereinafter referred to as Ld. 'CIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') for AY 2016-17 dated 27.02.2026. 2. The Revenue is in appeal before the Tribunal raising the following grounds of appeal:

"

1.

Whether in the fact and circumstances of the case Ld. CIT(A) had failed to appreciate the fact that M/s. Saffire Exports & Agency Pvt. Ltd. with whom the assessee had executed the concerned transaction to the tune of Rs. 2,00,00,000/-, is enlisted as shell concern and any transaction executed wi

The order continues below.

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