Parasnath Fuels Pvt. Ltd. Vs DCIT (ITAT Dehradun)
Rule 29 Rescues Assessee- Loans Need Fresh Look: ITAT Admits New Evidence, Sends Rs.90 Lakh Addition Back to AO
Assessee appealed against NFAC order dated 08.10.2024 sustaining addition of Rs.90,00,000/- u/s 68 r.w.s 115BBE towards unsecured loans from M/s Yogya Shippings Pvt. Ltd. (Rs.50 lakh) & M/s Rajusha Textiles Pvt. Ltd. (Rs.40 lakh). During assessment u/s 147, AO noted that though Assessee filed loan confirmations, bank statements & lenders’ ITR acknowledgements, financial statements of lenders were not filed. AO treated loans as unexplained & made addition u/s 68/115BBE. CIT(A) upheld the addition, observing lack of adequate evidence & absence of proper compliance; appeal was dismissed without granting sufficient opportunity.
Before Tribunal, Assessee filed an application under Rule 29 seeking admission of additional evidences—bank statements, audited financials & ITRs of both lenders for AYs 2017-18 & 2018-19—explaining that earlier non-production was due to reasonable cause, including adjournment request dated 19.09.2024 which CIT(A) ignored. Assessee argued these documents fully establish identity, creditworthiness & genuineness of the lenders.
Tribunal noted that though Assessee failed to submit details earlier, justice cannot be denied merely for procedural lapses. Relying upon Delhi High Court judgment in Virgin Securities & Credits Pvt. Ltd., Tribunal held that additional evidences were crucial & deserved admission under Rule 29. Tribunal admitted all additional evidences & restored the matter to AO for de novo assessment after considering the new material. AO was directed to provide reasonable opportunity, & Assessee directed to cooperate & furnish all documents.
