M/S PINKCITY INFRACON PVT. LTD.,JAIPUR vs. ACIT, CIRCLE-6, JAIPUR, JAIPUR

ITA 1581/JPR/2025Status: DisposedITAT Jaipur16 September 2026AY 2017-1810 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee discharged its onus under Section 68 by providing confirmations, bank statements, and proof of TDS on interest and brokerage. The Tribunal also found that the disallowance of interest was incorrect as it was capitalized and not claimed as a deduction.

What were the facts?

The assessee company received unsecured loans from two entities, M/s Akshit Impex Pvt. Ltd. and M/s Dome Bell Electronics India Pvt. Ltd. The Assessing Officer added these loans to the assessee's income under Section 68, stating the creditors were non-existent and their creditworthiness unproven. The assessee also claimed interest expenses on these loans.

What were the issues?

Whether the addition of unsecured loans under Section 68 was justified, and whether the disallowance of interest expenses was valid.

Which sections of the Income-tax Act were involved?

Section 68,Section 37,Section 143(3),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH, JAIPUR

Before: Shri T.R. Senthil Kumar & Shri Prakash

PER : PRAKASH, ACCOUNTANT MEMBER:-

1.

This appeal by the Assessee is directed against the order of the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Cen- tre, Delhi [hereinafter referred to as “the learned CIT(A)”] dated 23.09.2025 passed under section 250 of the Income Tax Act, 1961 (he- reinafter referred to as “the Act”) arising out of the assessment order dated 24.12.2019 passed by the Assessing Officer (hereinafter referred to as "the AO") under section 143(3) of the Act.

I.T.A No. 1581/JPR/2025 Page No 2 M/s Pinkcity Infraction Pvt. Ltd.

2.

In the appeal before us, in substance, ground no. 1 assails the addition o

The order continues below.

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