Isha Mehta Vs ITO (ITAT Delhi)
Summary: The appeal filed by Isha Mehta before the Income Tax Appellate Tribunal, Delhi Bench “A”, arose from the order of the Commissioner of Income Tax (Appeals), NFAC, Delhi dated 01.12.2025 for Assessment Year 2021-22. The CIT(A) had upheld the assessment order dated 28.12.2022 passed under section 143(3) read with section 144B of the Income Tax Act, 1961, whereby an addition of Rs. 1,91,60,000 was made under Section 68 read with section 115BBE on account of unsecured loans.
The assessee had filed her return of income for AY 2021-22 on 23.03.2022 declaring taxable income of Rs. 17,20,870. Her case was selected for scrutiny because the lenders from whom unsecured loans had been received had not filed their income tax returns. The Assessing Officer had identified five persons from whom unsecured loans were received and accepted the loans from three parties as genuine. The disputed loans were Rs. 21,60,000 received from Rishi Mehta and Rs. 1,70,00,000 received from Stellar Leisure World LLP.
In respect of Stellar Leisure World LLP, the Assessing Officer noted the returns of income for Assessment Years 2019-20, 2020-21 and 2021-22 and also considered the status of annual returns and balance sheets filed with the Registrar of Companies. Since the LLP had not filed its annual returns and financial statements before the ROC, the Assessing Officer doubted the genuineness of the transactions and creditworthiness of the lender.
