Unique Finance & Securities Private Limited Vs ACIT (ITAT Kolkata)
In a significant ruling, the Income Tax Appellate Tribunal (ITAT) Kolkata has set aside an order by the National Faceless Appeal Centre (NFAC), Delhi, thereby deleting an addition of ₹7,22,90,000/- made to the income of Unique Finance & Securities Private Limited. The appeal, pertaining to Assessment Year 2013-14, centered on an unsecured loan received by the assessee.
Unique Finance & Securities Private Limited had challenged both the reopening of its assessment under Section 147 read with Section 148 of the Income Tax Act, and the subsequent confirmation of the addition by the Commissioner of Income Tax (Appeals) [CIT(A)]. The ITAT, however, primarily focused on the merits of the addition.
The background to the case involves the assessee filing its return of income for AY 2013-14, declaring a total income of ₹51,27,060/-. Subsequently, the Assessing Officer (AO) reopened the assessment, possessing information that the company was a beneficiary of accommodation entries in the form of unsecured loans totaling ₹8,42,26,643/-.
During the assessment proceedings, the assessee provided extensive documentation to the AO, including audited balance sheets, profit and loss accounts, ITR acknowledgements, bank accounts, ledger accounts related to the loans, bank statements of third parties, audited statements, ITRs, trade licenses, and loan confirmations from the third parties.
