STAR COTSPIN LIMITED,GANGRAR CHITTORGARH vs. CENTRAL CIRCLE, AJMER, AJMER

ITA 1293/JPR/2025Status: DisposedITAT Jaipur13 January 2026AY 2014-15Bench: SMT. ANNAPURNA GUPTA (Accountant Member), SHRI NARINDER KUMAR (Judicial Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the assessee had sufficiently discharged its onus of proving the genuineness of the loan transaction by providing documentary evidence and demonstrating repayment. The additions were based on assumptions and lacked cogent evidence.

What were the facts?

The assessee received an unsecured loan of Rs. 50 lakh from M/s Diwakar Commercial Pvt. Ltd. (DCPL), which was treated as an accommodation entry. An additional Rs. 75,000 was added for alleged commission paid for this entry.

What were the issues?

Whether the unsecured loan was a genuine transaction or an accommodation entry, and whether the addition for commission was sustainable.

Which sections of the Income-tax Act were involved?

Section 68,Section 69A,Section 153C

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Income Tax Appellate Tribunal, “A” BENCH, JAIPUR

Before: SMT. ANNAPURNA GUPTA & SHRI NARINDER KUMAR

Hearing: 24/12/2025Pronounced: 13/01/2026

PER: ANNAPURNA GUPTA, AM

The present appeal has been filed by the assessee against the order passed by the Ld. Commissioner of Income Tax (Appeal), (ld. CIT(A))/National Faceless Appeal Centre (NFAC), Delhi under Section 250 of the Income Tax Act, 1961, (hereinafter referred to as “Act”).

2.

It was common ground that the solitary issue in the present appeal pertained to addition made to the income of the assessee on account of unsecured loan taken by it during the year from one M/s Diwakar Asst. Year:2014-15 2 an accommodation entry, the addition being made u/s 68 of the Act in proceeding

The order continues below.

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