ACIT CENTRAL CIRCLE-1 RAIPUR, RAIPUR vs. AKASH ISPAT PVT LTD, RAIPUR

ITA 523/RPR/2025Status: DisposedITAT Raipur05 August 2026AY 2017-1821 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s order, stating that the assessee had sufficiently proved the identity, creditworthiness, and genuineness of the unsecured loans. The Tribunal found no evidence of round-tripping and noted that the AO had not conducted proper inquiries before rejecting the assessee's submissions.

What were the facts?

The assessee company received unsecured loans totaling Rs. 4,87,31,994. The Assessing Officer (AO) made an addition of Rs. 3,90,97,000 as unexplained cash credit, suspecting round-tripping of funds due to insufficient creditworthiness and bank balances of lenders. The CIT(A) deleted the addition, finding that the assessee had established the identity, creditworthiness, and genuineness of the transactions, including the source of funds for the lenders.

What were the issues?

Whether the assessee proved the identity, creditworthiness, and genuineness of unsecured loans received, and if the AO was justified in making an addition for unexplained cash credit.

Which sections of the Income-tax Act were involved?

Section 68,Section 115BBE

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RAIPUR BENCH, RAIPUR

Before: JUSTICE (RETD.) SHRI C. V. BHADANG & SHRI R. K. PANDA

For Appellant: Shri Prafulla Pendse, CA
For Respondent: Shri Rituparna Namdeo, CIT-DR

PER R.K. PANDA, VP:

This appeal filed by the Revenue is directed against the order dated 12.06.2025 of the Ld. CIT(A), Raipur-3 relating to assessment year 2017-18. 2. Facts of the case, in brief, are that the assessee is a company engaged in the business of manufacturing of steels. The assessee filed its return of income on 29.10.2017 for AY 2017-18 declaring loss of Rs.2,00,77,849/-. The return was processed u/s 143(1) of the Act. Subsequently, the case was selected for scrutiny and notice u/s 143(2) of the Act was issued and served upon the assessee. Thereafter, notice u/s 142(1) of the Act along with questionnaire were issued and duly served on the assessee in response to which, the assessee filed requisite details from time to

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 68

All 29,931 judgments and leading authorities on Section 68 →

Recent GST High Court judgments

Search GST case law →