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Facts
The assessee's appeal for AY 2019-20 arose against an order involving proceedings under section 147/143(3) of the Income-tax Act. The issue concerned an addition of Rs.25 lakhs representing repayment of a loan and an alleged commission expenditure of Rs.75,000/-.
Held
The Tribunal held that the impugned sum of Rs.25 lakhs was received from M/s. Sirsa Deposits and Advance Ltd. and its repayment in the subsequent year was not a matter under section 69, as the source of the loan was not questioned. The Tribunal found merit in the assessee's contentions and deleted both additions.
Key Issues
Whether the repayment of a loan, where the source of the loan itself was not questioned, could be added as income or repayment addition. Whether the alleged commission expenditure was a valid addition.
Sections Cited
147, 143(3), 69
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH: “SMC” NEW DELHI
Before: SHRI SATBEER SINGH GODARA
ORDER This assessee’s appeal for assessment year 2019-20 arises against the Commissioner of Income Tax (Appeals)-30 [in short, the “CIT(A)”], New Delhi’s order dated 24.07.2025 passed in case no. CIT(A), Delhi-30/10665/2018-19, involving proceedings under section 147/143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Heard both the parties. Case file perused.
It emerges during the course of hearing that there is hardly much a need for the tribunal to delve with the relevant factual matrix at length so far as the sole substantive issue between the parties involving the addition amount of Rs.25 lakhs which represents repayment of loan is concerned. It is deemed appropriate to make it clear that both the learned lower authorities have further added an alleged 3% commission expenditure of Rs.75,000/- in the assessee’s hands as well.
That being the factual backdrop, this tribunal hereby notices from a perusal of the case records that the impugned sum of Rs.25 lakhs was received from M/s. Sirsa Deposits and Advance Ltd. on 30th January, 2018 which forms subject matter of the repayment herein in the succeeding assessment year 2019-20 which is nothing but the repayment of the amount already obtained only. It is reiterated that the impugned addition is not under section 69 wherein both the learned lower authorities had questioned the source of the loan amount itself. Faced with this situation, I find merit in the assessee’s vehement contentions challenging the impugned repayment addition of Rs. 25 lakhs as well as the alleged commission component thereupon. Both these impugned additions stand deleted therefore.
This assessee’s appeal is allowed.
2 | P a g e Order pronounced in the open court on 29th October, 2025