ACIT CC 7(3), MUMBAI vs. NOP PROPERTIES PRIVATE LIMITED, MUMBAI

ITA 7648/MUM/2025Status: DisposedITAT Mumbai09 March 2026AY 2012-13Bench: SHRI SANDEEP GOSAIN (Judicial Member), SHRI PRABHASH SHANKAR (Accountant Member)1 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the AO relied solely on the Investigation Wing report without independent inquiry. The transaction was made through banking channels with supporting documents and confirmations. The loan was repaid before any doubt was raised by the department. The repayment and documentary evidence sufficiently established the nature of the transaction, identity of the lender, and its genuineness. Therefore, the additions made by the AO were not sustainable.

What were the facts?

The Revenue appealed against the CIT(A)'s order deleting an addition of Rs. 25,00,000/- made on account of alleged accommodation entries from M/s. Khusboo Complex Pvt. Ltd. (KCPL) and also deleting disallowance of interest expenditure of Rs. 2,049/-. The assessee, a property developer, had received this amount as an unsecured loan which was fully repaid with interest before the assessment was reopened. The Assessing Officer (AO) treated the transaction as sham based on an investigation wing report.

What were the issues?

Whether the addition of Rs. 25,00,000/- as unexplained cash credit and disallowance of interest of Rs. 2,049/- on account of accommodation entries were justified when the loan was repaid and supported by documentary evidence and banking channels?

Which sections of the Income-tax Act were involved?

Section 68,Section 143(3),Section 147,Section 148,Section 69C

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Before: SHRI SANDEEP GOSAIN & SHRI PRABHASH SHANKAR

For Appellant: Shri Rahul Punmiya, AR
For Respondent: Shri Brajendra Kumar (Sr. DR)
Hearing: 09.02.2026Pronounced: 09.03.2026

PER PRABHASH SHANKAR [A.M.] :- The present appeal arising from the appellate order dated 29.09.2025 is preferred by the Revenue against the order passed by the Learned Commissioner of Income-tax, Appeal, CIT(A) 49, Mumbai [hereinafter referred to as “CIT(A)”] pertaining to assessment order passed u/s. 143(3) r.w.s. 147 of the Income-tax Act, 1961 [hereinafter referred to as “Act”] dated 30.12.2019 for the Assessment Year [A.Y.] 2012-13. P a g e | 2 A.Y. 2012-13 NOP Properties Private Limited, Mumbai 2.

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