SEN FERRO ALLOYS (P) LTD.,KOLKATA vs. A.C.I.T., CC - 4(3), KOLKATA

ITA 2358/KOL/2024Status: DisposedITAT Kolkata29 January 2026AY 2014-201514 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal, following the Gujarat High Court ruling in Ambe Tradecorp (P) Ltd., held that if the assessee is no longer a beneficiary of the loans and the loan transactions were proven genuine, then additions under Section 68 are unjustified. Consequently, the additions made by the AO and confirmed by the CIT(A) were deleted.

What were the facts?

The assessee appealed against the CIT(A) orders for AY 2014-15 and 2015-16. A search was conducted on the assessee, leading to assessment under Section 153A r.w.s 143(3). The original assessment had examined loans taken by the assessee. These loans were repaid by assessment year 2015-16.

What were the issues?

Whether additions under Section 68 for unsecured loans are sustainable when the loans were repaid, the identity and creditworthiness of lenders were established, and the assessee was no longer the beneficiary of the loans?

Which sections of the Income-tax Act were involved?

Section 153A,Section 143(3),Section 142(1),Section 131,Section 132,Section 147,Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH, KOLKATA

Before: SHRI GEORGE MATHAN & SHRI RAJESH KUMAR

For Appellant: Shri Somnath Ghosh, Advocate, Shri Altaf Hussain, Sr. DR
For Respondent: Shri Altaf Hussain, Sr. DR
Hearing: 29/01/2026Pronounced: 29/01/2026

Per George Mathan, AM: These are two appeals filed by the assessee against the order passed by the Id. CIT(A), Kolkata-27, both dated 26.09.2024 for the assessment years 2014-2015 & 2015-2016. 2. It was submitted by the Id.AR that there was in search on the assessee on 01/12/2015. As a consequence of search, the assessment came to be completed u/s.153A r.w.s 143(3) of the Act on 31/12/2017. The Ld. AR drew our attention to the notice issued u/s.142(1) of the Act in the course of said

The order continues below.

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