ACIT Vs Skybridge Real Estates LLP (ITAT Kolkata)
Identity & Creditworthiness Proved – Unsecured Loans through Banking Channels – ITAT confirms deletion of Rs. 20.25 Cr Loan addition.
In assessment, AO had made addition of Rs. 20.25 crore treating unsecured loans as unexplained cash credits, consisting of Rs. 19.50 crore from Babcock Borsing Ltd. & Rs. 75 lakh from Williamson Financial Services Ltd. AO doubted creditworthiness & genuineness of lenders. CIT(A), however, deleted addition after verifying facts. It was noted that in the case of Babcock Borsing Ltd., figure was actually Rs. 1.95 crore & not Rs. 19.50 crore, which error had occurred due to auditor’s mistake in audit report. Corrected report was filed & balance sheet also reflected Rs. 1.95 crore.
Tribunal observed that both lending companies had undergone scrutiny assessments u/s 143(3) for the same year & no adverse inference was drawn therein. Hence, identity & creditworthiness of lenders stood established. The loans were received through banking channels, confirming genuineness. Revenue failed to dislodge findings of CIT(A). Tribunal therefore upheld deletion of additions & dismissed Revenue’s appeal.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
This is an appeal filed by the revenue against the order of the National Faceless Appeal Centre [hereinafter referred to as the ‘CIT(A)’] in appeal no.NFAC/2017-18/10046007 dated 19.07.2024 for assessment year 2018-19 and the assessee has filed cross-objection against the revenue’s appeal.
