DCIT Vs Privi Exports Private Limited (ITAT Kolkata)
ITAT Kolkata Upholds Deletion of ₹10.25 Crore u/s 68 — Loans Found Genuine & Supported by Evidence
Kolkata ITAT dismissed the Revenue’s appeal against Privi Exports Pvt. Ltd., confirming the CIT(A)’s deletion of addition u/s 68 on unsecured loans of ₹10.25 crore.
Facts
AO, after a survey u/s 133A, noted that the company allegedly brought back its unaccounted money in the guise of unsecured loans based on statements of its directors Shri Vishwanath Gupta & Shri Vivek Gupta.
Although both later retracted their statements, citing coercion during the survey, the AO made an addition of ₹10.25 crore treating the loans as bogus accommodation entries.
CIT(A)’s Findings
CIT(A) gave detailed factual findings, holding that:
- Loans were received from 10 parties through banking channels;
- Interest of ₹16.52 lakh was paid after TDS deduction;
- The loans were repaid in subsequent years;
- Lenders had sufficient capital & reserves to advance funds.
- She relied on rulings like Ambe Tradecorp (P) Ltd. (145 taxmann.com 27, Guj), Kalasben Mangarlal Chokshi (220 CTR 138, Guj), Kedar Khan & Sons (352 ITR 480, SC), and CIT v. Mayawati (338 ITR 563, Del), holding that a retracted statement without corroboration has no evidentiary value.
Tribunal’s Decision
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