ITO Vs Pooja Kedia (ITAT Jaipur)
Income Tax Appellate Tribunal (ITAT), Jaipur, in the case of ITO vs. Pooja Kedia, dismissed the revenue’s appeal challenging the deletion of an ₹80,00,124/- addition under Section 68 of the Income Tax Act, 1961. The case involved alleged unexplained cash credits treated as accommodation entries in the form of unsecured loans during the Assessment Year 2019–20.
Background
The revenue reopened the assessment based on information that the assessee, Pooja Kedia, had received bogus unsecured loans from two entities—M/s. Everstrong Enclave Pvt. Ltd. and M/s. Megapix Vintrade Pvt. Ltd.—which were allegedly shell companies linked to the Banka Group, identified during a search operation.
However, during reassessment, the assessee clarified that there was no loan transaction involved. Instead, she had sold equity shares of BPIP Infra Pvt. Ltd.—four lakh shares each at face value of ₹10—to the two companies, amounting to ₹40 lakh each. She supported her claim with sale invoices, bank statements, ledger accounts, ITR acknowledgments, and audited financials.
Findings of CIT(A)
The Commissioner of Income Tax (Appeals) accepted the assessee’s explanation, holding that:
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The transaction was a sale of shares at face value through regular banking channels, and
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The assessee had submitted adequate documentation to establish the identity of the buyers, their financial capacity, and the genuineness of the transaction.
Accordingly, the CIT(A) deleted the addition made under Section 68.
