INCOME TAX OFFICER, MORIGAON vs. PROGRESSIVE FERTICHEM PRIVATE LIMITED, JAGIROAD

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ITA 114/GTY/2025Status: DisposedITAT Guwahati04 February 2026AY 2017-18Bench: SHRI GEORGE MATHAN (Judicial Member), SHRI LAXMI PRASAD SAHU (Accountant Member)1 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted that there is no bar on directors providing interest-free or lower-interest loans. The loans were not claimed as bogus or for non-business purposes. The CIT(A)'s order on VAT remission was based on a prior decision, and the fixed deposits were held to be for business purposes. Thus, no interference was found necessary in the CIT(A)'s orders.

What were the facts?

The revenue filed an appeal against the order of the CIT(A) for AY 2017-2018. The primary issue involved the disallowance of interest on loans granted by directors, which the AO treated as manipulation for higher profits and claimed deduction u/s 80IA. The CIT(A) deleted this addition. Other issues involved VAT remission and interest on fixed deposits.

What were the issues?

Whether the disallowance of interest on director's loans and the treatment of VAT remission and interest on fixed deposits for eligible business deductions were justified.

Which sections of the Income-tax Act were involved?

Section 80IA,Section 80IE

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, GAUHATI BENCH, GUWAHATI

Before: SHRI GEORGE MATHAN, JM & SHRI LAXMI PRASAD SAHU, AM

For Respondent: Shri Santosh Karnani, Sr. DR
Hearing: 04/02/2026Pronounced: 04/02/2026

आदेशािुसार/ BY ORDER,

(Assistant Registrar) आयकर अपीलीय अधिकरण, गुवाहाटी / ITAT, Guwahati

Date Initial 1. Draft dictated on 04.02.26 Sr.PS 2. Draft placed before author 04.02.26 Sr.PS 3. Draft proposed & placed before the second JM/AM member 4. Draft discussed/approved by Second Member. JM/AM 5. Approved Draft comes to the Sr.PS/PS Sr.PS/PS 6. Kept for pronouncement on Sr.PS 7. File sent to the Bench Clerk Sr.PS 8. Date on which file goes to the OS 9. Date on which file goes to the AR 10. Date of dispatch of Order.

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