DCIT Vs Nivedan Fin-Invest Lese Limited (ITAT Delhi)
Suspicion ≠ Evidence: 12% Theory Collapses: ITAT Delhi Deletes Entire ₹25 Cr 69A Addition- Revenue’s ₹25 Cr Cash-Loan Story Dismissed
Revenue appealed deletion of addition of ₹25 crore made by AO u/s 69A alleging that Assessee, an NBFC, had advanced a cash loan to JBK Developers based solely on statements of two Airwill Group directors claiming 12% interest cash loans & on WhatsApp/mobile data showing an entry of ₹35 lakh “interest”.
Tribunal noted that Assessee had already undergone scrutiny u/s 143(3) wherein ₹10 crore loan to JBK Developers & interest @3.5% per month (42% p.a.) were fully examined, supported by a registered loan agreement dated 27.03.2015, bank trail & TDS on interest. Mobile data itself showed “two cheques of ₹35,00,000 due as interest”, disproving the cash-interest allegation. CIT(A)’s detailed findings—reproduced by Tribunal—held that no seized material showed any cash loan, AO conducted no inquiry, denied cross-examination, ignored Assessee’s director’s statement & relied only on speculative inference that 35 lakh interest implied a ₹35 crore loan. Tribunal held the approach “half-baked”, emphasising that suspicion cannot replace proof, especially when contemporaneous evidence including insolvency claim before RP showed loan of only ₹10 crore. Revenue failed to point out any flaw in CIT(A)’s reasoning.
