DCIT Vs Priyas Impex Private Limited (ITAT Delhi Bench)
U/s 69A – Repayment Is Not a Fresh Receipt: ₹2.22 Crore Loan Repaid Before Search & Reopening Cannot Be Branded an Accommodation Entry Merely on Suspicion
Summary: The Delhi ITAT dealt with an interesting case where the AO made an addition of ₹2.21 crore u/s 69A not on receipt of loans during the year, but on repayment of loans taken in an earlier year, alleging that the lenders were entities controlled by accommodation-entry operators. The Tribunal upheld the CIT(A)’s deletion, holding that where the loans were old liabilities, received & subsequently repaid through banking channels, supported by documentary evidence & repayment itself had taken place even before the third-party search & much before reopening, the transactions could not be discarded merely on suspicion arising from subsequent Investigation Wing material.
Facts
The assessee-company was incorporated on 12.07.2016 & filed its return for AY 2018-19 declaring Nil income. The assessment was subsequently reopened by notice u/s 148 dated 22.03.2024. During reassessment, the AO alleged that the assessee was beneficiary of accommodation entries routed through M/s Sarvottam Securities Pvt. Ltd., M/s SW Consultants Pvt. Ltd. & M/s Upaj Leasing & Finance Company Pvt. Ltd.
