Tug Indofin Pvt. Ltd. Vs DCIT (ITAT Kolkata)
Unsecured Loan and 14A Disallowance Both Deleted: ITAT Kolkata Grants Full Relief to NBFC for AY 2017-18
The Kolkata ITAT allowed the assessee’s appeal and deleted both the addition of ₹40 lakh made under Section 68 and the further disallowance of ₹19.45 lakh under Section 14A read with Rule 8D in the case of Tug Indofin Pvt. Ltd. for AY 2017-18. On the unsecured loan issue, the Tribunal held that the assessee had fully discharged its onus by furnishing PAN, ROC data, audited financials, ITRs, confirmations and bank statements of the lender company, KSA Agro Industries Pvt. Ltd., which had also complied with notice under Section 133(6). The loan was taken and repaid through banking channels with interest, and no defect was pointed out by the Assessing Officer. Relying on the jurisdictional Calcutta High Court decision in PCIT v. Alom Extrusions Ltd., the Tribunal held that identity, creditworthiness and genuineness were duly proved and the Section 68 addition was unsustainable.
On the Section 14A issue, the Tribunal noted that the assessee had already made a suo motu disallowance of ₹15.44 lakh and had earned only dividend from mutual funds, with no exempt income from shares and no direct expenditure attributable to exempt income. Since no further expenditure was shown to have been incurred in relation to exempt income, the balance disallowance of ₹19.45 lakh was held to be unjustified and deleted. Accordingly, the appeal was allowed in full with complete relief to the assessee.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
Tug Indofin Pvt. Ltd. Vs DCIT (ITAT Kolkata)
This appeal filed by the assessee is directed against the order dated 04.07.2025 of the NFAC, Delhi (hereinafter referred to as the “CIT(A)”) passed u/s 250 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) for the assessment year 2017–18.
