INCOME TAX OFFICER, WARD-2, GANDHIDHAM vs. WISDOM INC., GANDHIDHAM

ITA 699/RJT/2025Status: DisposedITAT Rajkot28 August 2026AY 2023-248 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s decision to delete the addition, following the Gujarat High Court's precedent that once loan repayment is established through documentary evidence, the transaction cannot be viewed in isolation.

What were the facts?

The Assessing Officer made an addition of Rs. 37 crores under Section 68 for unsecured loans, citing lack of creditworthiness of the lenders. The assessee contended that the loans were repaid within the same or subsequent financial years.

What were the issues?

Whether the addition under Section 68 for unsecured loans is sustainable when the loans were subsequently repaid through banking channels, and whether the creditworthiness of the lenders needs to be independently examined in such cases.

Which sections of the Income-tax Act were involved?

Section 68,Section 143(3),Section 250,Section 133(6),Section 271AAC

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Rajkot Bench, Rajkot

Before: Dr. Arjun Lal Saini & Shri Sonjoy Sarma

For Appellant: Shri Mehul Ranpura, Ld. AR
For Respondent: Shri Ravinder Sindhu, Ld. CIT(DR)
Hearing: 08/06/2026Pronounced: 28/08/2026

Per, Shri Sonjoy Sarma, JM: Captioned appeal filed by the revenue, pertaining to Assessment Year (AY) 2023-24, is directed against the order under section 250 of the Income-tax Act, 1961 [hereinafter referred to as ‘the Act’] passed by the National Faceless Appeal Centre [hereinafter referred to as ‘NFAC’], dated 04.08.2025, which in turn arises out of an order passed by assessing officer u/s. 143(3) of the Act, dated 22.03.2025. 02. Brief facts

The order continues below.

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