Siddha Construction Vs DCIT (ITAT Surat)
The Surat Bench of the ITAT allowed the assessee’s appeal for AY 2012-13 and deleted the addition of ₹34.50 lakh made on account of unsecured loans. The Tribunal noted that the impugned loans had already been thoroughly examined and accepted during the original assessment under section 143(3), based on confirmations and income-tax returns of the lenders. Subsequently, even in reassessment proceedings, the loans were accepted and only a disallowance under section 40(a)(ia) for non-deduction of TDS on interest was made.
The Tribunal held that reopening the issue yet again on the basis of third-party search statements—without any direct or specific material linking the assessee’s lenders to bogus accommodation entries—was unjustified. In the absence of any fresh incriminating evidence and considering that the same loans had been scrutinized in multiple rounds of assessment, no contrary view could be taken. Accordingly, the addition was deleted and the appeal was allowed.
FULL TEXT OF THE ORDER OF ITAT SURAT
This appeal has been filed by the assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, [hereinafter referred to as “Ld. CIT(A)”] dated 05.03.2025, under section 250 of the Income-tax Act, 1961 [in short “the Act”] for the Assessment Year 2012-13.
