ACIT Vs Highlight Infrastructure Pvt. Ltd (ITAT Ranchi)
The Income Tax Appellate Tribunal (ITAT), Ranchi, dismissed the Revenue’s appeals against the orders of the Commissioner of Income Tax (Appeals) [CIT(A)] for Assessment Year 2021-22. The appeals involved common issues concerning additions made in the hands of the assessee in relation to unsecured loans advanced to M/s Atibir Industries Company Ltd. and the estimation of commission income.
The assessee submitted that it formed part of the Atibir Group of cases and that, following a search and seizure operation, M/s Atibir Industries Company Ltd. had disclosed ₹25 crore representing the entire amount of unsecured loans received from various companies, including the loans advanced by the assessee. Based on this disclosure by the ultimate beneficiary, the CIT(A) deleted the additions made in the assessee’s hands.
The Revenue contended that the assessee had failed to establish the unsecured loans and its financial capacity to advance them, and sought restoration of the Assessing Officer’s order. However, the Tribunal observed that the CIT(A) had recorded a finding that the unsecured loans had already been admitted as income by M/s Atibir Industries Company Ltd. The Revenue failed to dislodge this finding of fact. Accordingly, the Tribunal upheld the deletion of the additions relating to unsecured loans.
