AALAPS TRADLINK LLP,AHMEDABAD vs. THE, WARD-1(2)(1), AHMEDABAD

This appeal has been filed by the Assessee against the order dated 21.07.2025 passed by the Commissioner of Income-Tax (Appeal)/National faceless Appeal Centre(NFAC), Delhi relevant to the Assessment Year 2018-19.

The assessee has raised the following grounds of appeal:

The order passed by the Ld.CIT9A) is void, illegal and in violation of principle of natural justice as no opportunity of VC hearing provided inspite of specific request Asst. Year : 2018-19 - 2– 5. The appellant Craves liberty to add, amend, alter or modify all of any grounds of appeal before final appeal.

The assessee filed its return of income on 21.08.2018, declaring total income of Rs. 21,83,910/-. The Assessing Officer observed that the assessee had taken loans from its partners as well as from entities who were not its partners. After considering the reply of the assessee, the Assessing Officer, in respect of 24 parties, made an addition of Rs. 12,35,00,000/- under section 68 of the Income-tax Act, 1961, treating the same as unexplained unsecured loans.

The Ld. AR submitted that the assessee had received loans from 18 of its partners, and only 6 parties were non-partners. The Ld. AR further submitted that out of the total unsecured loans of Rs. 12,35,00,000/-, an amount of Rs. 8,09,71,117/- had already been repaid. It was submitted that due to business exigencies, loans were taken and immediately after availability of funds, the same were repaid to the extent stated. The Ld. AR submitted that complete details of unsecured loans were furnished before the Assessing Officer as well as before the Ld. CIT(A), including confirmations, computation of income of the creditors, ledger accounts, and bank statements.

The Ld. DR submitted that repayment of loans cannot be the criterion for determining the genuineness of unsecured loans. The Ld. DR relied upon the Assessment Order and the order of the Ld. CIT(A).

We have heard both the parties and perused the material available on record. It is pertinent to note that the assessee has furnished details of 24 parties including the 18 partners and 6 parties which are other than assessee’s partners which are as follows: Asst. Year : 2018-19 - 3–

The assessee has also given details of identity, creditworthiness and genuineness of the transaction. These evidences were very well before the Assessing Officer as well as before the Ld.CIT(A). Details of each loan payment, along with TDS, were also provided by the assessee. In view of the above, the amounts cannot be treated as unexplained cash credits under section 68 of the Act. Thus, the addition made by the Assessing Officer does not sustain.

In the result, the appeal filed by the assessee is allowed.