ACIT Vs Mahadev Shipbreakers Pvt. Ltd. (ITAT Ahmedabad)
Ahmedabad ITAT Confirms Loan Transaction – Revenue’s 69A Addition Deleted- AO’s Sweeping Allegations Insufficient – Loan to KCPL Held Genuine- Loan Through Banking Channels Accepted as Genuine
Revenue appealed against the order of CIT(A)/NFAC dated 13.02.2025 deleting addition of ₹80,94,875 made by AO u/s 69A. The case was reopened u/s 147 based on information from search in Jignesh Shah group alleging that Kasturi Commodities Pvt. Ltd. (KCPL) was an accommodation entry provider & had routed ₹80.94 lakh to the Assessee. AO ignored Assessee’s submissions, bank proofs, confirmations & requests for video hearing, and treated the transaction as unexplained money u/s 69A, taxing it u/s 115BBE, raising demand of ₹1.13 crore & initiating penalty u/s 270A(9).
CIT(A) deleted the addition holding that Assessee had in fact advanced an unsecured loan of ₹80 lakh to KCPL through RTGS, duly repaid within the year along with interest of ₹1,05,417 after TDS. Ledger accounts, confirmations, bank statements & MCA records supported genuineness. CIT(A) noted that AO failed to prove any nexus with accommodation entry racket & had only made sweeping remarks. As the Assessee was a lender, not a recipient, the allegation of entry provider was misplaced.
