TaxTMI 
TaxTMI 
2026 (9) TMI 1162
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....s selected for complete scrutiny and during the assessment proceedings ld. AO examine unsecured loans received from various parties and finding the submissions of assessee not satisfactory had made additions on account of loans received from M/s Hallow Securities Pvt. Ltd.; M/s Sundram Consultant Pvt. Ltd. and NV Ruchi Barter Pvt. Ltd. and the same have been thus added u/s. 68 of the Act totaling Rs. 12,42,25,000/- and the returned loss was assessed at Rs. 23,13,53,300/- and the same have been deleted by the ld. CIT(A) primarily on findings that assessee had discharged the onus by filing relevant evidences and the relevant part of the order of ld. CIT(A) is reproduced: "Conclusion The AR in the said grounds of appeal has challenged the addition of unsecured loans raised from three entities during the year under consideration. The receipt of unsecured loans is discussed para-wise as under: (a) Loan received from Hallow Securities Pvt. Ltd. The assessee has received an amount of Rs. 9,62,25,000/- from the above entity during the year under consideration. The AO has stated that the said entity does not possess the requisite creditworthiness to advan....
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.... Rs. 1.41 crores. Further, as per appellant, the lender has maintained fixed deposits totaling to Rs. 11.5 crores and has also raised CCDs of Rs. 60 crores from Teesta Retails Pvt. Ltd. (a Reliance Group Company). The appellant has further stated that, even if, the source of the lender entity are examined, the same are funded from the earlier advances or new loans raised from various entities. The appellant has provided a detailed chart explaining the source of source of unsecured loans which has already been reproduced in the submissions of the appellant above which need not be reproduced again for sake of brevity. Moreover, the AO has not questioned the source of source of the said entity and has only relied upon the creditworthiness of the transactions before arriving at the conclusion. The appellant has further stated that the unsecured loans received from the said entity have been fully repaid during the year or subsequent years. The issue of receipt of unsecured loan from Hallow Securities Pvt. Ltd. was also examined in the case of a sister concern of the assessee i.e. M/s. Allure Developers Pvt. Ltd. for the same assessment year i.e. AY 2020-21 by CIT(A). The releva....
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....on various issues carried out above, the addition made by the AO is not found to be sustainable and accordingly these grounds of appeal are allowed." The said decision of CIT(A) was contested by the Department before the Ld. ITAT Delhi "G" Bench, Delhi which in its order No. 3559/Del/2025 dated 26.11.2025 has held as under: 40. In view of the above discussion and further looking to the fact that when all the relevant details and documentary evidences produced by the assessee to establish the identity, creditworthiness and genuineness of the transactions, the said evidences cannot be rejected based on the statements of third party without any contrary documentary evidence. It is seen that transactions have been done through banking channels and on the date of making of loans, there was sufficient balance available in the bank account of the lender company, which proves the creditworthiness and genuineness of the transactions. It is also relevant that out total amount of loans of 27.27 crores received, the AO has despite of doubting the creditworthiness, had made the addition of INR. 17.74 crores only meaning thereby the creditworthiness for the remaining amount is ....
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....d from M/s. Sundram Consultant Pvt. Ltd. The appellant has stated that the loan received from the said entity is genuine as the identity, credibility and genuineness of the transaction has been fully established. It shall be important to highlight that the issue of loan received from M/s. Sundram Consultant Pvt. Ltd. was also examined in a group concern of the assessee i.e. M/s. ACE Infracity Developers Pvt. Ltd. for AY 2019-20 by CIT(A) and in Appeal No. CIT(A), Noida-3/10036/2018-19 vide order dated 28.10.2025, wherein, the addition made by the AO on account of loan received from M/s. Sundram Consultant Pvt. Ltd. has been sustained. The relevant para of the order of the CIT(A) is reproduced below for ready reference: "The facts, submissions, and documentary evidence placed on record by the appellant, including the audited financial statements, Income Tax Returns, ledger accounts, and other supporting documents filed at various pages of the Paper Book have been considered. The appellant has raised an unsecured loan of 230,00,000/-from M/s Sundram Consultants Pvt. Ltd. During the course of assessment proceedings, the appellant was directed by the AO to provide the copy of ....
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....ust be looked into holistically to arrive at the creditworthiness of an entity. The appellant further stated that the AO had issued notice u/s. 133(6) to the said lender which had itself furnished comprehensive documentary evidence to the AO including its ITR, audited financial statements, confirmed ledger and bank statements reflecting the loan transaction. The appellant has further stated that the AO himself got conducted enquiry u/s. 133(6) and the said lender had fully furnished the requisite reply before the AO. The AO has further stated that no formal loan agreement or collateral security was furnished. The appellant in response has stated that Section 68 requires satisfaction of three ingredients namely Identity, Genuineness and Creditworthiness of the lender/transactions which have been duly justified. The appellant has stated that the identity of the lender has never been disputed by the AO and the PAN and address of the lender was furnished before the AO. Further, as per appellant, the lender is a duly registered NBFC and confirmation of account, bank account statement, Profit & loss account and other financial particulars of the lender were furnished be....