RAJENDRA KUMAR KAPOOR,KOLKATA vs. D.C.I.T., CIRCLE - 29,, KOLKATA
Facts
The assessee's case was reopened under sections 147 and 148 after information suggested a ₹50 lakh credit from an "entry operator." The Assessing Officer (AO) added ₹50 lakhs as unexplained cash credit under section 68 for a loan taken from M/s Madhudhan Barter Pvt. Ltd., alleging it was a shell company and that the assessee failed to respond to a show cause notice. The CIT(A) confirmed this addition.
Held
The Tribunal noted that the assessee had provided comprehensive evidence including loan confirmation, PAN details, address, audited balance sheet, and bank statements, and demonstrated the loan's repayment through banking channels. Finding no infirmity in the evidence from the AO, and relying on precedents, the Tribunal ruled that no addition under section 68 was warranted.
Key Issues
Whether the addition of a loan amount as unexplained cash credit under section 68 is justified when the assessee provides comprehensive documentation and demonstrates repayment through banking channels.
Sections Cited
68, 139(5), 147, 148, 260A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “D” BENCH, KOLKATA
Before: SHRI RAJESH KUMAR, AM & SHRIPRADIP KUMAR CHOUBEY, JM
Per Rajesh Kumar, AM:
This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 20.08.2025 for the AY 2018-19.
The only issue raised in the various grounds of appeal is against the confirmation of addition of ₹50,00,000/- by the ld. CIT (A) as made by the ld. AO u/s 68 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) in respect of loan taken from M/s Madhudhan Barter Pvt. Ltd.
The facts in brief are that the assessee filed the revised return of income u/s 139(5) of the Act on 07.02.2019, declaring total income at ₹2,50,05,800/-. The assessee also showed exempt income of
In the appellate proceedings, the ld. CIT (A) confirmed the order of the ld. AO.
After hearing the rival contentions and perusing the materials available on record, we find that the assessee has raised loan from M/s Madhudhan Barter Pvt. Ltd. during the year and filed before the
In the result, the appeal of the assessee is allowed.
Order pronounced in the open court on 26.02.2026.
Sd/- Sd/- (PRADIP KUMAR CHOUBEY) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated: 26.02.2026 Sudip Sarkar, Sr.PS
Copy of the Order forwarded to: 1. The Appellant 2. The Respondent 3. CIT DR, ITAT, 4. 5. Guard file. BY ORDER, True Copy//
Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Kolkata
