RANVIR JALUKA,KOLKATA vs. I.T.O., WARD - 9(1),, KOLKATA

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ITA 1758/KOL/2024Status: DisposedITAT Kolkata31 January 2024AY 2016-2017Bench: SHRI RAJESH KUMAR (Accountant Member), SHRI PRADIP KUMAR CHOUBEY (Judicial Member)4 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the loan appeared genuine as it was used in business and repaid, and the addition based solely on a third party's statement was not sustainable. The consequential interest addition was also set aside.

What were the facts?

The assessee received an unsecured loan of ₹20 lacs from M/s Fastspeed Realcon Pvt. Ltd. in FY 2015-16, which was repaid in FY 2017-18. The Assessing Officer (AO) added this amount as unexplained cash credit, treating it as bogus, based on investigation reports of the lender group.

What were the issues?

Whether the addition of unsecured loan as unexplained cash credit is justified when the loan was repaid and the addition relies solely on third-party investigation reports.

Which sections of the Income-tax Act were involved?

Section 68,Section 147,Section 148,Section 132(4),Section 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, KOLKATA

For Appellant: Shri Rajeeva Kumar, AR
For Respondent: Shri Monalisha Pal Mukherjee
Hearing: 23.01.2025Pronounced: 31.01.2025

This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 16.07.2024 for the AY 2016-17.

2.

The only issue raised by the assessee is against the confirmation of addition of ₹20 lacs by the ld. CIT (A) as made by the ld. AO on account of bogus unsecured loans and confirmation of interest thereon amounting to ₹53,330/-.

3.

The facts in brief are that the assessee filed the return of income on 21.06.2016, declaring total income of ₹31,29,040/-. The case of the assessee was reopened u/s 147 of the Act by issuing notice u/s 148

4.

In the appellate proceedings, the ld. CIT (A) confirmed the order of the ld. AO by holding that assessee has failed to discharge onus cast upon proving the identity, creditworthiness and genuineness of the transitions of ₹20,53,330/- from M/s Fastspeed Realcon Pvt. Ltd. and therefore, additions were rightly made by the ld. AO.

5.

After hearing the rival contentions and perusing the materials available on record, we find that the assessee has borrowed unsecured loan of ₹ 20 lacs from Fastspeed Realcon Pvt. Ltd. a company belonging to Banka Group of companies n F.Y. 2015-16,

6.

In the result, the appeal of the assessee is allowed.

Order pronounced in the open court on 31.01.2025.

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