KAMLESHKUMAR PATEL,AHMEDABAD vs. THE ITO, WARD-1(2)(3), AHMEDABAD

ITA 419/AHD/2026Status: DisposedITAT Ahmedabad30 September 2026AY 2013-142 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the addition of Rs. 43,37,745/- made by the Assessing Officer under Section 68 of the Income Tax Act, 1961, was not justified. The Tribunal noted that the assessee received loans totaling Rs. 42,00,000/- from a corporate entity on November 3, 2012, and November 5, 2012. Crucially, the entire loan amount of Rs. 45,50,000/- (including interest) was repaid on May 29, 2015, and interest of Rs. 3,46,466/- was paid on May 21, 2015. The Tribunal found that the identity, genuineness, and creditworthiness of the loan parties were not in dispute. Moreover, the receipt of the loan, its repayment, and the repayment of interest were also not doubted. Consequently, the Assessing Officer's decision to treat the loan as coming from a bogus entry provider could not be affirmed. The appeal of the assessee was allowed.

What were the facts?

The assessee, Kamleshkumar Patel, filed an appeal against the order of the Commissioner of Income Tax (Appeals) (NFAC), Delhi, dated December 17, 2025, for Assessment Year 2013-14. The appeal challenged the confirmation of an addition of Rs. 43,37,745/- made by the Assessing Officer under Section 68 of the Income Tax Act, 1961. This addition pertained to loans received by the assessee. The assessee received Rs. 25,00,000/- on November 3, 2012, and Rs. 17,00,000/- on November 5, 2012, from a corporate entity. The total loan amount of Rs. 45,50,000/- was repaid on May 29, 2015, along with interest of Rs. 3,46,466/- paid on May 21, 2015. The ground relating to the reopening of the assessment was not pressed by the assessee.

What were the issues?

1. Whether the addition of Rs. 43,37,745/- made by the Assessing Officer under Section 68 of the Income Tax Act, 1961, is justified, considering the assessee received loans from a corporate entity and subsequently repaid the principal and interest. Assessee's Contentions: The assessee argued that the identity, genuineness, and creditworthiness of the loan parties were not in question. Furthermore, the receipt of the loan, its repayment, and the repayment of interest were not doubted by the revenue authorities. Therefore, the Assessing Officer's conclusion that the loan was from a bogus entry provider could not be sustained. Revenue's Contentions: The judgment does not record any specific contentions made by the Revenue on this issue.

Which sections of the Income-tax Act were involved?

Section 68,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD

Before: DR. B.R.R. KUMAR, VICE-SHRI RAHUL CHAUDHARY

For Appellant: Shri Mehul K. Patel, Ar
For Respondent: Shri Drop Singh Meena, Sr. DR
Hearing: 07.07.2026Pronounced: 30.09.2026

PER DR. B.R.R. KUMAR, VICE-PRESIDENT:

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The captioned appeal has been filed by the assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals) (hereinafter referred to as “Ld. CIT(A)”), National Faceless Appeal Centre (NFAC), Delhi vide order dated 17.12.2025, under section 250 of the Income-Tax Act, 1961 (hereinafter referred to as “the Act”) for the Assessment Year 2013-

14.2.

The solitary grievance raised by the assessee is against the order of the Ld. CIT(A) in confirming the addition of Rs.43,37,745/- made by the Assessing Officer u/s 68 of the Act in respect of loan taken by the assessee.

3.

The ground relating

The order continues below.

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