THE PRINCIPAL COMMISSIONER OF INCOME TAX vs. HARSH STOCK PORTFOLIO PVT.LTD.
What did the High Court hold?
The Tribunal held that since the loans along with interest were repaid in the same assessment year, no addition could be made. The genuineness of the lending companies was established by their PAN and ROC registration.
What were the facts?
The Revenue appealed the deletion of additions related to unsecured loans received by the assessee company. The loans were from two companies alleged to be shell companies.
What were the issues?
Whether the assessee discharged the onus to prove the genuineness of unsecured loans when the lender companies were alleged to be shell companies and whether repayment of loans negates additions.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Income Tax Appeal No. 59/2025 The Principal Commissioner Of Income Tax, (Central), Rajasthan, Room No. 402, 4Th Floor, Jeevan Nidhi-2, Bhawani Singh Road, Ambedkar Circle, Jaipur-302005 ----Appellant Versus Harsh Stock Portfolio Pvt. Ltd., 8, Main Gopalpura Byepass, Triveni Nagar, Jaipur (PAN/GIR No. AACH3091B). ----Respondent For Appellant(s) : Mr. Siddharth Bapna, Adv. with Ms. Tanushka Saxena For Respondent(s) : HON'BLE THE ACTING CHIEF JUSTICE MR. SANJEEV PRAKASH SHARMA HON'BLE MRS. JUSTICE SANGEETA SHARMA Order 12/02/2026 1. Learned counsel for the Revenue submits that the CIT and ITAT have erred in deleting the addition made by the Assessing Officer relating to the unsecured loans obtained by the assessee company from M/s Desire Vincom Pvt. Ltd. and M/s Wellworth Tradeling Pvt. Ltd. Once a doubt is created relating to the credit worthiness of the concerned loan company, which is alleged to be a shell company, the onus would lie upon the assessee to produce the parties along with the necessary documents to establish the genuineness of the transaction. 2. We notice that the loan taken by the assessee was returned along with interest to the said companies in the same assessment year. Therefore, it is apparent that no addition can be made of
(2 of 2) [ITA-59/2025] such income received by way of loan as the same has already been returned. The assessee has sufficiently proved the genuineness of the companies as their PAN numbers were produced as well as the companies remain duly registered with the ROC and, therefore, cannot be said to be shell companies. 3. The requirement of the companies being produced by the assessee in support, to remove the doubt of the Assessing Officer is only far-fetched and cannot be said to be a question of law to be examined by this Court. All the other aspects have been factually examined by both the CIT as well as ITAT. The present appeal being devoid of merits is accordingly, dismissed. 4. All the pending application(s), if any, stand disposed of. (SANGEETA SHARMA),J (SANJEEV PRAKASH SHARMA),ACTING CJ Shivani/Ekta/10
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