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Facts
The Assessing Officer disallowed interest paid on unsecured loans from 14 companies, alleging their registrations were cancelled. The assessee provided MCA certificates showing the companies were active, which the Assessing Officer later verified and confirmed.
Held
The Tribunal found that the Assessing Officer's initial finding of cancelled registrations was erroneous, as subsequent verification confirmed the companies were active. Therefore, the disallowance of interest was unjustified.
Key Issues
Whether the disallowance of interest paid on unsecured loans is justified when the creditor companies were found to be active.
Sections Cited
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Income Tax Appellate Tribunal, RANCHI BENCH, RANCHI
Before: SHRI GEORGE MATHAN & SHRI RATNESH NANDAN SAHAY
Assessee represented by Sri R.R. Mittal, A.R. Department represented by Shri Khub Chand Pandya, Sr.DR Date of hearing 11/06/2025 Date of pronouncement 11/06/2025 O R D E R PER: BENCH 1. This is an appeal filed by the assessee against the order of the learned CIT(A), Patna-3, Patna in appeal No. CIT(A), Patna-3/10307/2017-18 dated 30/09/2022 for the A.Y. 2018-19.
Shri R.R. Mittal, ld A.R. is represented on behalf of the assessee and Shri Khub Chand Pandya, ld. Sr.DR is represented on behalf of the revenue.
It was submitted by the ld. AR that in the course of assessment, the Assessing Officer had disallowed the interest paid on unsecured loans taken from 14 companies as mentioned in page No. 2 and 3 of the assessment order. It was a submission that the Assessing Officer had in para 3.1.2 of his order, held that the assessee company is found to have made transactions with the above said companies, whose registrations reported to have been cancelled by the Ministry of Corporate Affairs (MCA). The ld. Authorised Representative had placed before