RAMESWARDAS MADANLAL,SAMBALPUR vs. ACIT/DCIT, CIRCLE 2(1), SAMBALPUR, SAMBALPUR

ITA 433/CTK/2026Status: DisposedITAT Cuttack04 June 2026AY 2017-185 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the loans were taken in the preceding assessment year (2016-17) and were carried forward as unsecured loans. Since the loans did not relate to the impugned assessment year (2017-18), the addition made by the AO and confirmed by the CIT(A) was deleted.

What were the facts?

The assessee, engaged in the business of perishable goods, took unsecured loans from relatives. The Assessing Officer (AO) disallowed the loans, stating the lenders' bank transactions did not prove their creditworthiness. The CIT(A) upheld the AO's decision.

What were the issues?

Whether the AO can disallow loans taken in a preceding assessment year but carried forward as unsecured loans to the impugned assessment year, based on the creditworthiness of the lenders at the time the loan was originally taken.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “HYBRID COURT AT CUTTACK”

Before: SHRI GEORGE MATHAN & SHRI RAJESH KUMAR

For Appellant: Shri P.R.Mohanty & Shri Dipti Ranjan Nayak, AR
For Respondent: Shri Vijay Singh, Sr. DR
Hearing: 04.06.2026Pronounced: 04.06.2026

PER BENCH: This is an appeal filed by the assessee against the order of the NFAC, DELHI [hereinafter referred to as the ‘CIT(A)’] in appeal No.CIT(A), Sambalpur-10339/2019-20 dated 20.08.2025. 2. Shri P.R.Mohanty and Shri Dipti Ranjan Nayak, ld. AR appeared on behalf of the assessee and Shri Vijay Singh, Sr. DR represented on behalf of the revenue.

3.

The appeal of the assessee is delayed by 174 days. In this regard, the assessee has filed an application for condonation of delay supported with an affidavit stating sufficient reasons for delay. Ld. Sr. DR also did

ITA No.433/CTK/26 not object to condone the same. Accordingly, considering the contents of the affidavit filed by the assessee

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.

Recent GST High Court judgments

Search GST case law →