M/S. PASSION INFRADEVELOPERS PRIVATE LIMITED,KANPUR vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1, KANPUR

ITA 639/LKW/2018Status: DisposedITAT Lucknow30 June 2026AY 2013-1418 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that while the amendment to Section 68 regarding source of source was prospective, proving the creditworthiness of lenders was always necessary. Since crucial additional evidence was presented, the matters were restored to the AO for de novo assessment.

What were the facts?

The assessees, sister companies, had unsecured loans credited to their accounts. The Assessing Officer (AO) made additions based on the belief that the creditworthiness of the lenders was not established. The CIT(A) partly allowed the appeals, confirming some additions.

What were the issues?

Whether the assessees sufficiently proved the identity, creditworthiness, and genuineness of the lenders for unsecured loans, and if additional evidence should be admitted and considered.

Which sections of the Income-tax Act were involved?

Section 68,Section 143(3),Section 133(6),Section 133A,Section 132(4)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW ‘A’ BENCH, LUCKNOW

For Respondent: DR &
Hearing: 11.05.2026Pronounced: 30.06.2026

PER NIKHIL CHOUDHARY, A.M.: These two appeals have been filed by the assessees, which are sister companies, against the separate orders passed by the ld. CIT(A)-4, Kanpur under section 250 of the Income Tax Act, 1961 on 19.07.2018, wherein the ld. CIT(A) partly allowed the appeals of the assessee against the orders A.Y. 2013-14 M/s Passion Infradevelopers Pvt. Ltd. M/s Passion Infrapromoters Pvt.

The order continues below.

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