DCIT Vs Commmunique Marketing Solutions (P) Ltd. (ITAT Delhi)
AO made additions of ₹5 crore u/s 68 for unsecured loans & ₹51.39 lakh u/s 37 for interest, alleging the loans were unexplained. Assessee produced confirmations, ITRs, financials, & bank statements of the three lender companies—Suraj Trading Co. Pvt. Ltd., Suraj Buildmart India Pvt. Ltd., & Suraj Dall Mills Pvt. Ltd.—& proved identity, creditworthiness & genuineness.
CIT(A) deleted both additions, noting that loans were received & repaid through banking channels, interest was paid after TDS, & lenders had adequate net worth. ITAT upheld this view, holding that once these three ingredients are proved, the onus shifts to the Department.
On Assessee’s cross-objection, ITAT further held that the amended Section 115BBE (higher tax rate) applies only prospectively from 15.12.2016, & not to earlier transactions.
Held: Loans genuine; additions u/s 68 & disallowance of interest rightly deleted; 115BBE not applicable retrospectively.
FULL TEXT OF THE ORDER OF ITAT DELHI
The appeal filed by the Revenue and Cross-Objection by the assessee are against order dated 27.08.2024 of Learned Commissioner of Income Tax (Appeals)/National Faceless Assessment Centre (NFAC), Delhi (hereinafter referred as “the Ld. CIT(A)”) under Section 250 of the Income Tax Act, 1961 (hereinafter referred as “the Act”) arising out of Order dated 12.12.2019 of the Learned Assistant Commissioner of Income Tax , Circle 6(1), Delhi (hereinafter referred as “the Ld. AO”) under Sections 143(3) Act for assessment year 201718.
