AUM Citiscapes LLP Vs ITO (ITAT Pune)
Assessee, an LLP engaged in real estate business, declared NIL income. AO made multiple additions including huge additions to closing stock & capitalization of expenses, apart from addition u/s 68 at Rs.17.90 lakh for unsecured loans from five persons.
CIT(A) deleted all additions except the u/s 68 addition of Rs.17.90 lakh. Before Tribunal, Assessee furnished complete details—PAN, address, confirmations, cheque numbers, ledger accounts, repayment details, interest payments with TDS compliance. Out of Rs.17.90 lakh, Rs.13.90 lakh stood fully repaid; remaining Rs.4 lakh was supported by confirmations & identity details.
Tribunal relied on the jurisdictional Bombay High Court judgment in PCIT vs Skylark Build (24.10.2018) which held that where loans have been repaid & creditors are identifiable, genuineness stands established even if initial inference was doubtful. Examining material in paper book, Tribunal held that identity, creditworthiness & genuineness were satisfactorily proved,& Revenue brought no contrary evidence. Accordingly, the addition u/s 68 of Rs.17.90 lakh was deleted, reversing CIT(A)’s finding. Appeal allowed in full.
FULL TEXT OF THE ORDER OF ITAT PUNE
This appeal at the instance of the assessee is directed against the order of National Faceless Appeal Centre (NFAC)/ Commissioner of Income Tax (Appeals), Delhi [“CIT(A)”], dated 04/03/2025 passed under section 250 of the Income Tax Act, 1961 (“Act”), which is arising out of assessment order u/s. 143(3) r.w.s. 143(3A) & 143(3B) of the Act, dated 01/03/2021 for the Assessment Year (AY) 2018-19.
