SAROJ AGARWAL,RUDRAPUR vs. ACIT CIRCLE 2(1)(1), HALDWANI

This appeal arises from order dated 25.11.2025, passed u/s 250 of the Income Tax Act, 1961 (hereafter as “the Act”), by Addl./JCIT(Appeals)-2, Surat. In this case, the main issue pertains to loans taken by the assesseee from five persons amounting to Rs.41,00,000/-. The Ld. AO, after verification and examination of documents, allowed the loans from one Abdul Rahuf and Shubham Agarwal. However, he added the loan amounts pertaining to Faeem Ahmad, Firojali and Waseem amounting to Rs.24 lakhs. This amount has been added u/s 68 of the Act.

Before us the Ld. AR stated that the loan obtained from Mr. Waseem was actually repaid on 04.01.2020 and in support of this claim certain bank documents have been filed at page 63 of the paper book. It was argued that even though this document was not before the Ld. AO but if repayment of loan was the deciding factor, then this document would clinch the issue in favour of the assessee.

We have considered the rival submissions and have gone through the records. It is seen that the assessee has repaid the loan as is visible from the bank statement placed before us. However, for all intents and purposes, this is a new document and would have some value in determining whether the impugned amount deserves to be visited with the rigors of section 68 of the Act or not. Accordingly, we deem it fit to set aside the impugned order on the limited issue of the loan amount pertaining to Mr. Waseem and remanding this matter back to the file of Ld. AO for examination of the documents available pertaining to Mr. Waseem and thereafter passing a speaking order on merits regarding the loan from Mr. Waseem. On this limited issue this matter is remanded to the file of the Ld. AO.

In the result, this appeal is allowed for statistical purpose.