DCIT Vs Ramswarup Bajaj (ITAT Guwahati)
Bogus Loan Addition Deleted as Belonging to Firm, Not Assessee – Wrong Assessment Year Share Addition Also Quashed – ITAT Guwahati
ITAT upheld CIT(A)’s order deleting additions of ₹98.96 lakh towards alleged bogus unsecured loans and ₹1.86 crore towards share transactions. Tribunal noted that the unsecured loans were recorded in the books of M/s Kishlay Snacks Products and, if at all bogus, addition ought to have been made in the firm’s hands u/s 68 and not in the individual assessee’s case. Revenue failed to rebut the factual finding that no enquiry or verification was carried out with the alleged lenders.
Regarding share purchase addition, ITAT observed that the transactions pertained to A.Y. 2017-18, whereas the impugned year was A.Y. 2018-19, making the addition unsustainable. Since Revenue could not dislodge the factual findings of CIT(A), both deletions were upheld and Revenue’s appeal dismissed.
FULL TEXT OF THE ORDER OF ITAT GUWAHATI
This is an appeal filed by the Revenue against the order of the Commissioner of Income-tax (Appeals), Central, North-East Region, Guwahati (hereinafter referred to as the “Ld. CIT(A)”] in appeal no. CIT (A), Central NER, Guwahati/100060/2017-18 dated 07.06.2023 for the AY 2018-19.
2. Shri Rohit Kappor & Virsain Aggarwal, represented on behalf of the assessee and Shri Santosh Kumar Karnani, Sr. DR represented on behalf of the Revenue.
