ASST. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 1, RAIPUR, NAWA RAIPUR vs. MAHESHWARI COAL BENEFICATION AND INFRASTRUCTURE PVT. LTD., TIKRAPARA

ITA 835/RPR/2025Status: DisposedITAT Raipur05 August 2026AY 2016-1716 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s deletion of additions. It reasoned that prompt repayment of loans before assessment completion, as supported by previous tribunal decisions and High Court rulings, negates the possibility of accommodation entries and renders additions under Section 68 unwarranted.

What were the facts?

The assessee received unsecured loans from several private limited companies. The Assessing Officer (AO) treated these loans as unexplained cash credits, disallowing them and related interest, after an inspector reported the loan creditor companies lacked physical presence and had meager incomes. The CIT(A) deleted the additions, noting the loans were repaid promptly before assessment completion.

What were the issues?

Whether loans treated as unexplained cash credits under Section 68 are valid additions when they are repaid before the assessment is completed. Whether the genuineness of loans can be doubted solely based on the lack of physical presence of creditor companies and their meager incomes, when repayment is prompt.

Which sections of the Income-tax Act were involved?

Section 68,Section 143(2),Section 142(1),Section 41(1)

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 Sunil Kumar Agrawal, CA
For Respondent: Shri Piyush Tripathi, Sr.DR

PER R.K. PANDA, VP:

This appeal filed by the Revenue is directed against the order dated 10.10.2025 of the Ld. CIT(A)-3, Nagpur relating to assessment year 2016-17. 2. Facts of the case, in brief, are that the assessee is a company engaged in the business of trading of coal and transportation. It filed its return of income on 05.10.2016 declaring total income of Rs.2,23,56,280/-. The case was selected for compulsory scrutiny. Accordingly, statutory notice u/s 143(2) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) was issued and served on the assessee. Thereafter, notice u/s 142(1) along with a questionnaire was also issued

2 and

The order continues below.

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