S D INFRASTRUCTURE & REAL ESTATE PRIVATE LIMITED,KOLKATA vs. DCIT, CIRCLE 5(1),, KOLKATA

IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, KOLKATA Before Shri Rajesh Kumar, Accountant Member and Shri Pradip Kumar Choubey, Judicial Member ITA No 295/KOL/2026 Assessment Year: 2016-17 S D Infrastructure & Real Estate Private limited...................................................Appellant Bikaner Building, 3rd Floor, 8B, Lal Bazar Street, Kolkata- 700001, [PAN No .AAACO6215E ] Vs. DCIT, Circle5(1)....…………..…………………....……….Respondent Aayakar Bhaban,Poorva, 110, Shantipally, Kolkata- 700107 Appearances by: Miraj D. Shah, Adv., appeared on behalf of the Appellant. Praveen Das Chowdhury, (Sr. D.R.), appeared on behalf of the Respondent. Date of concluding the hearing : June 29, 2026 Date of pronouncing the order : July 14 ,2026 ORDER Per Pradip Kumar Choubey, Judicial Member: This appeal filed by the assessee is directed against the order dated 09.01.2026 of the National Faceless Appeal Centre (NFAC), passed under Section 147 of the Assessment Year 2016-17 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”). 2. The brief facts of the case of the assessee the assessee company is a Private Limited Company. The Company filed its return of income for AY 2016-17 on 03.10.2016, declaring a total income of Rs. 1.29,29,630/- The said return was processed u/s 143(1) of the Income Tax Act. 1961 Subsequently, notice u/s 148A was issued alleging that the assessee company had taken loan of Rs.1,00,00,057/- from M/s Biharji Commercial Pvt Ltd and Rs. 1,07,00,000/- from M/s Emrald

ITA No.295/Kol/2026 Assessment Year- 2016-17 Commercial Ltd, which as per the information of the department is a shell company which is controlled and managed by alleged entry operator. In response to the same the assessee company furnished it reply with documentary evidences. However, the Ld. AO was not satisfied with the reply filed and passed order u/s 148A(d) and the case was reopened and notice u/s 148 was issued on 21.04.2023. In response to the same the assessee company filed return u/s 148 on 04.05.2023 under protest and subsequently statutory notices u/s 143(2) and 142(1) was issued and served on the assessee company. In response to the same the assessee company vide its submissions filed all the details and documents as called for and explained the issue on which the case was reopened. The case of the assessee company was reopened on the ground that assessee company has taken bogus loan of Rs. 1,00,00,057/-from M/s Biharji Commercial PvtLtd and Rs. 1,07,00,000/- from M/s Emrald Commercial Ltd. Thereafter, show cause notice was issued and the same was complied. During the assessment proceeding u/s 148A and 148, the assessee company submitted all the documents related to the loan taken and discharged its onus of proving the identity, creditworthiness and genuineness of the loan taken. The Ld. AO after discussion made an addition of loan taken from M/s Biharji Commercial Pvt Ltd and M/s Emrald Commercial Ltd amounting to Rs. 1,00,00,057/-and Rs. 1,07,00,000/- respectively u/s 68 of income tax act 1961 as unexplained cash credit. Aggrieved by the said order assessee preferred appeal before the CIT(A) wherein appeal of the assessee has been dismissed. Being aggrieved by and dissatisfied the assessee preferred appeal before us. 3. The Ld. AR has challenged the very impugned order thereby submitting that Ld.AO did not consider the documentary evidences nor

ITA No.295/Kol/2026 Assessment Year- 2016-17 the documents has been properly verified by the Assessing Officers and the CITA(A) has also did not discuss the documentary evidences filed by the assessee rather it confirmed the order of the AO by observing that assessee failed to discharge his onus to prove the identity, genuiness, and trustworthy of the company. The Ld. AR submits that appeal of the assessee be remitted back to the file of the AO with a direction to verify the documents of the assessee and passed a fresh order as according to him loan has already been repaid by the assessee.AR cited a decision passed by the Kolkata High Court which is as follows:- (i) ITAT/2/2024 IA No: GA/1/2024 PRINCIPAL COMMISSIONER OF INCOME TAX-13 KOLKATAVS PARWATI LAKH UDYOG (II) ITAT/28/2024 IA NO: GA/2/2024 PRINCIPLA COMMISSIONER OF INCOME TAX CENTRAL 1 KOLKAT VS M/S EDMOND FINVEST PVT LTD (III) ITAT/268/2024 IA NO: GA/1/2024, GA/2/2024 PRINCIPAL COMMISSIONER OF INCME TAX, CENTRAL-2, KOLKATA VS ALOM EXTRUSIONS LTD. (IV) ITAT/76/2025 IA NO: GA/1/2025 PRINCIPAL COMMISSIONER OF INCOME TAX- 2, KOLKATA VS M/s. NARAYAN TRADECOM PVT. LTD. (V) ITAT/13/2025 IA NO: GA/2/2025 PRINCIPAL COMMISSIONER OF INCOME TAX W KOLKATA VS RAHUL PREMIER INDIA AGENCY PRIVATE LIMITED

ITA No.295/Kol/2026 Assessment Year- 2016-17 4. The Ld. DR supports the impugned order by submitting that Ld AO has discussed the case of the assessee on merit and CIT(A) has also passed a well-reasoned and explained order. 5. Upon hearing the submission of the counsel of the respective parties and on perusal of the impugned order, we find that assessee is a private limited company. The case of the assessee company was reopened on the issue that company has taken loan from M/s Bihari Commercial Pvt. Ltd. And M/s Emrald Commercial Ltd. The submission of the AR is that assessee took loan from Bihari Commercial Private Ltd and M/s Emrald Commercial Pvt. Ltd during the year and payment of interest on loan was made to them after deducting TDS. The further submission of the AR is that loan taken from the said entities has already been re-paid and all transaction were made through banking channels. The submission of the AR is that the documents filed by the assessee should be properly verified by the Assessing Officers in the in the light of the judgment passed by the Hon’ble Kolkata High Court as loan has duly been repaid. 6. Keeping in view the submission made by the assessee and considering the order passed by the Assessing Officer we are remitting the appeal of the assessee to the file of the AO with a direction to pass a fresh order after proper verification of the documents and in the light of the submission made by the assessee that loan has been repaid. The learned AO shall pass order keeping in mind the judgment passed by the Hon’ble Kolkata High court on the issue of loan being repaid. With the aforesaid observation the appeal of the assessee is allowed for statistical purpose. Appeal of the assessee is remitted back to the file of the AO for fresh adjudication after hearing the assessee.

ITA No.295/Kol/2026 Assessment Year- 2016-17

Kolkata, the 14th July , 2026.

Sd/- Sd/-

[Rajesh Kumar] [Pradip Kumar Choubey] Accountant Member Judicial Member

DC Dated:. 14. 07.2026.

Copy of the order forwarded to: 1. Appellant - 2. Respondent - 3. CIT(A)- 4. CIT- 5. CIT(DR)

//True copy// By order Assistant Registrar, Kolkata Benches

ITA No.295/Kol/2026 Assessment Year- 2016-17