Mirabelle Tradecomm Private Limited Vs ITO (ITAT Kolkata)
Loan Squared Up in Same Year Can’t Be Branded Bogus: Kolkata ITAT Deletes ₹8 Lakh u/s 68 Despite ‘High Risk’ Tag
Kolkata ITAT ‘SMC’ Bench in Mirabelle Tradecomm Pvt. Ltd. Vs. ITO [ITA No. 1946/KOL/2025, AY 2018-19, order dated 31.12.2025] allowed Assessee’s appeal and deleted addition of ₹8,00,000 made u/s 68 and taxed u/s 115BBE. Assessee-company, engaged in investment and lending activities, had received unsecured loan from M/s Dumpy Suppliers Pvt. Ltd., which was flagged as a “high-risk” transaction under Insight portal. AO treated ₹8 lakh as unexplained cash credit on ground that lender was allegedly a paper company providing accommodation entries and Assessee failed to explain fund flow satisfactorily.
Tribunal noted that it was an admitted fact that Assessee had availed loan during FY 2017-18 and repaid the entire amount on 26.03.2018, thereby squaring off transaction in same year, and proof of repayment was placed on record. Tribunal further observed that even AO had acknowledged repayment in assessment order. Relying on binding Calcutta HC decision in PCIT-2, Kolkata Vs. Rahul Premier India Agency Pvt. Ltd. (order dated 05.08.2025), Tribunal held that where identity of lender, transaction through banking channel and repayment are proved, addition u/s 68 cannot be sustained merely on suspicion or “high-risk” tagging. Accordingly, addition of ₹8 lakh and consequential application of s.115BBE were deleted and appeal was allowed
FULL TEXT OF THE ORDER OF ITAT KOLKATA
