TaxTMI 
TaxTMI 
2026 (7) TMI 289
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....cts and in the circumstances of the instant case, the impugned assessment order dated 31.12.2019 framed u/s. 143(3) of the Income-tax Act, 1961 ("the Act") for Assessment Year ("AY") 2017-18 by the Ld. Assessing Officer ("AO") / Respondent, and erroneously upheld, in part, by the Ld. Commissioner 'of Income-tax (Appeals) ["Ld. CIT(A)"] vide order dated 30.08.2025, is exfacie unlawful, void ab initio, and bad in law. 2. That the Ld. AO has erred in issuing notice u/s 143(2) of the Act dated 18.09.2018 for AY 2017-18 without adhering to the binding CBDT Instruction F. No.2251157/2017/ITA-II dated 23.06.2017, thereby rendering the impugned assessment proceedings void ab initio and unlawful vide this Hon'ble Tribunal in Anita G....
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....thereunder by placing on record bank statements, confirmation, ledgers, and income-tax returns of the creditors, thereby establishing their identity, genuineness of the transactions, and creditworthiness. 7. That the Ld. CIT(A) has erred in partly affirming the impugned addition of Rs. 1,23,00,000/- u/s. 68 of the Act, ignoring that the said amount, being unsecured loan, has, been repaid in subsequent years. 8. That the impugned addition of Rs. 1,23,00,060/- u/s 68 of the Act is unsustainable in law, having been made in disregard of the documentary evidence(s) on record discharging the onus on the Appellant and in the absence of any contrary material vide Lalchand Bhagat Ambica Ram v. Commissioner of Income Tax [1959] 37 I....
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....(for short 'the Act'). During assessment proceedings, the Assessing Officer observed from the financial statements submitted by the assessee that assessee has received unsecured loans from five parties during the year and assessee was unable to submit the relevant documents/evidences to prove the genuineness of the transactions and creditworthiness of the parties. After analysing the Balance Sheet of the assessee, he observed that the unsecured loans as on 31.03.2016 were Rs. 1,43,71,499/- and it stood at Rs. 2,77,67,387 as on 31.03.2017. He observed that there is increase of Rs. 1,33,95,888/- in the unsecured loan during the year under consideration. After analysing the submissions of the assessee, he observed that assessee has not submitt....
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....at assessee has taken unsecured loan from four parties and he found that Ankit Gupta, Laksh Bansal and Pravina Gupta from whom assessee has taken small unsecured loans which matches with income declared by them. Accordingly, he gave relief to the assessee to that extent. With regard to unsecured loan taken from Neera Mahajan of Rs. 88,00,000/- and from Shephali Rastogi of Rs. 35,00,000/-, he observed that as per the ITRs submitted by the assessee reveals low income levels that do not support the creditworthiness to advance such significant amounts. Since the assessee has not discharged onus of proving creditworthiness of these criteria u/s 68 of the Act, he proceeded to sustain the additions made by the AO. 7. Aggrieved with the above or....
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....o determine the grievance of the lenders, earning capacity is one of the criteria and ability to arrange and make the payment is relevant. We observed that lenders have made the payment through banking channel and all the lenders have filed the confirmations of the same and assessee has brought to our notice bank statements and ledger account for payment of interest as well as repayment of loan subsequently. The above details clearly shows that the assessee has taken unsecured loans and also paid the relevant interest and returned the relevant loan subsequently. 11. We observed that the coordinate Bench in the case of Real Innerspring Technologies Pvt. Ltd. in ITA No.647/Del/2023 order dated 27.03.2025 held as under :- "10. Cons....
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....f the PB) 06.12.2017 30.12.2017 (Pg 39 & 40 of the PB) M/s. CEA Consultants Pvt. Ltd. 50,00,000 18.03.2016 (Pg 81 of the PB) 27.04.2016 28.03.2017 (Pg 81 of the PB) 17.03.2017 18.03.2017 21.03.2017 (Pg 83 & 84 of the PB) 12. From the above, it is clear that the assessee has repaid the loan even before the assessment was reopened. When the assessee takes the loan and repaid along with the interest clearly shows that the transactions are genuine. By returning the loan, the assessee has only utilised the loan for the purpose of business and repaid the same. Merely because some operator has managed the affairs and all the transactions cannot be labelled as non-genuine. Every transaction has to be evaluated on its meri....