DY. COMMISSIONER OF INCOME TAX EXEMPTION CIRCLE NAGPUR, NAGPUR vs. VIDHARBHA BAHUUDESHIYA SHIKSHAN SANSTHA, NAGPUR, NAGPUR

ITA 789/NAG/2025Status: DisposedITAT Nagpur19 February 2026AY 2017-18Bench: SHRI R. K. PANDA (Vice President)1 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s decision to delete the additions, holding that when a loan is received and repaid through banking channels within the same financial year, and the identity of the lender is established, Section 68 cannot be invoked. The Tribunal distinguished the revenue's cited case as not applicable.

What were the facts?

The assessee, a trust, received a loan of Rs. 20 lakhs and interest of Rs. 1,80,822/- from M/s. Aneri Fincap Ltd, which was alleged to be a paper company providing bogus accommodation entries. The Assessing Officer made additions under Sections 68 and 69C of the Income Tax Act.

What were the issues?

Whether additions under Section 68 can be made for a loan routed through banking channels and repaid within the same financial year, even if the lender is alleged to be a paper company. Whether the assessee's claim of repayment and banking channel transactions are sufficient to disprove the AO's findings.

Which sections of the Income-tax Act were involved?

Section 68,Section 69C,Section 12A,Section 148,Section 148A,Section 143(2),Section 142(1),Section 132,Section 131

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Income Tax Appellate Tribunal, NAGPUR BENCH “SMC”,

Before: SHRI R. K. PANDA

For Appellant: Shri Abhishek Kumar, Adv
For Respondent: Shri Surjit Kumar Saha Sr.DR

PER R. K. PANDA, VP :

This appeal filed by the Revenue is directed against the order dated 13.10.2025 of the Ld. CIT(A) / NFAC, Delhi, relating to assessment year 2017-18. 2. Facts of the case, in brief, are that the assessee is a trust and filed its return of income on 19.08.2017 declaring total income at Nil. The case was reopened on the basis of information that the assessee had obtained loan from a paper company M/s. Aneri Fincap Ltd which was engaged in providing bogus accommodation entries to various beneficiaries. Accordingly, a notice u/s 148 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) was issued to the assessee on 2 25.06.2

The order continues below.

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