BUDHIMAN ENTERPRISE PVT. LTD.,AHMEDABAD vs. THE INCOME TAX OFFICER, WARD-1(1)(1), AHMEDABAD
Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD
Before: DR. B.R.R. KUMAR, VICE-SHRI SIDDHARTHA NAUTIYAL
PER DR. B.R.R. KUMAR, VICE-PRESIDENT:-
These two appeals have been filed by the Assessee against the order dated
14.05.2025 passed by the Ld. Commissioner of Income-Tax (Appeals), National
Faceless Appeal Centre, Delhi (“Ld. CIT(A)” for short), under Section 250 of the Income-tax Act, 1961 (“the Act” for short), relating to the Assessment Years 2013-
14 & 2015-16. 2. As the issues involved in both the appeals are identical, they were heard together and are being disposed of vide this common order for the sake of convenience. We shall take ITA No.1513/Ahd/2025 for AY 2013-14 as lead case for the purpose of adjudication.
The brief facts of the case are that the assessee is a company incorporated on 27.02.1986 under the Company Act, 1956 and filed its return of income for the Assessment Year 2013-14 on 28.09.2013 declaring total income at Rs.19,27,710/- . The Assessing Officer completed the assessment u/s 143(3) of the Act vide order dated 19.10.2015. Subsequently, the case was reopened u/s 147 of the Act and the Assessing Officer completed the assessment by making an impugned addition
ITA Nos. 1513 & 1516 Ahd 2025
Asst. Year : 2013-14& 2015-16
- 2–
of Rs.3,44,81,726/- u/s. 68 of the Act on account of unaccounted income as the assessee failed to explain the genuineness of the transaction.
Aggrieved by the order of the Assessing Officer, the assessee preferred an appeal before the Ld. CIT(A). The Ld. CIT(A), after considering the submissions of the assessee and relying on various decisions of the various courts/tribunal, dismissed the appeal filed by the assessee.
Aggrieved by the order of the Ld. CIT(A), the assessee is now in appeal before the Tribunal.
Before us, the Ld. AR submitted that the transaction with the transaction in dispute is unsecured loan transaction which has been repaid and the details are as under:-
Appellant - Buddhiman Enterprise Pvt. Ltd.
Reconciliation of amounts adopted for addition by the department
AY 2013-14
Refer: Confirmation ledger at P/B Pg. 66
Particulars
Amount (Rs.)
Receipt of loan
2,25,00,000
Add: Interest paid on loan
11,00,959
Add: Repayment of loan
1,09,90,863
Less: TDS paid on interest on loan
-1,10,096
Amount adopted by department
3,44,81,726
AY 2014-15
Particulars
Amount (Rs.)
Interest paid on loan
11,25,000
Less: TDS paid on interest on loan
-1,12,500
Amount adopted by department
10,12,500
AY 2015-16
Refer: Confirmation ledger at P/B Pg. 78
Particulars
Amount (Rs.)
Interest paid on loan
10,20,205
Add: Repayment of loan
1,44,30,684
Less: TDS paid on interest on loan
-1,02,021
Amount adopted by department
1,53,48,868
ITA Nos. 1513 & 1516 Ahd 2025
Asst. Year : 2013-14& 2015-16
- 3–
7. The assessee has diligently provided all necessary documents, including ledger accounts, bank statements, and TDS challans, to substantiate the legitimacy of the transaction. It is crucial to emphasize that the onus to prove the transaction as bogus lies with the Assessing Officer. However, it is evident that the Assessing
Officer has failed to meet this burden. The Revenue Authorities solely relied on statements from various individuals and findings from the Investigation Wing without providing concrete evidence to support the allegation of the transaction being bogus. Having gone through the facts on record, we hold that the addition made by the Assessing Officer cannot be sustained as no evidence has been brought by the Assessing Officer and the loan amounts have been duly repaid along with interest after deduction of TDS.
In the result, both the appeal of the assessee are allowed.
The order is pronounced in the open Court on 25.09.2025. (SIDDHARTHA NAUTIYAL)
VICE-PRESIDENT
Ahmedabad; Dated 25.09.2025
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आदेश की ितिलिप अ ेिषत/Copy of the Order forwarded to :
अपीलाथ / The Appellant 2. थ / The Respondent. 3. संबंिधतआयकरआयु / Concerned CIT 4. आयकरआयु(अपील) / The CIT(A)- 5. िवभागीयितिनिध, आयकरअपीलीयअिधकरण, अहमदाबाद/ DR, ITAT, Ahmedabad 6. गाड फाईल/ Guard file.
आदेशानुसार/ BY ORDER,सहायक पंजीकार (Dy./Asstt.