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of <h1>Tribunal upholds deletion of loan addition, emphasizes compliance and lack of adverse findings</h1> <h3>ITO, Ward-1 (1), Kolkata Versus M/s Artlink Vintrade Pvt. Ltd.</h3> ITO, Ward-1 (1), Kolkata Versus M/s Artlink Vintrade Pvt. Ltd. - TMI Issues:- Whether the Commissioner of Income Tax (Appeals) was justified in deleting the addition made towards loans received by the assessee in the sum of Rs. 64,04,20,000.Analysis:- The appeal by the Revenue was against the order of the Commissioner of Income Tax (Appeals) in relation to the assessment year 2012-13 under section 143(3) of the Income Tax Act, 1961.- The primary issue was whether the loans received by the assessee were genuine, specifically from Database Software Technology Pvt Ltd and Indigo Edutainment Pvt Ltd, totaling Rs. 64,04,20,000.- The assessing officer had added this sum to the assessee's income, alleging that the loans were unexplained and conduited as the assessee's own money.- The assessee argued that the loan creditor companies were part of the same group, directors were residents of Mumbai, and sufficient documentation and confirmations were provided.- The Commissioner of Income Tax (Appeals) observed that the non-appearance of directors before the assessing officer was the basis for the addition.- The Commissioner directed the assessing officer to delete the addition and inform the assessing officers of the loan creditor companies in Mumbai for necessary action.- The Appellate Tribunal noted that the loans were duly reflected in the books of accounts, audited, and no adverse remarks were made in the scrutiny assessments of the loan creditor companies.- The Tribunal found that the assessing officer's failure to secure the presence of directors from Mumbai was not fatal, given the ongoing scrutiny assessments in Mumbai.- The Tribunal upheld the Commissioner's decision to delete the addition, emphasizing the assessee's compliance with providing necessary documentation and the absence of adverse findings in the loan creditor companies' assessments.- Consequently, the appeal of the Revenue was dismissed, affirming the deletion of the addition towards loans received from companies within the same group.
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