Jasdeep Kaur Chadha Vs DCIT (ITAT Amritsar)
Bank trail saves the Day – ITAT Amritsar deletes addition on squared-up Loans; Bank-Traced Loans Cannot Be Treated as Unexplained Cash Credits; Loans Repaid Within the Year Escape Section 68 Addition. ITAT Amritsar allowed Jasdeep Kaur Chadha’s appeal, deleting ₹51 lakh addition under Section 68 on unsecured loans. Loans taken and repaid in the same year through banking channels, with supporting PAN, ITRs, and bank statements, were treated as genuine. Revenue’s appeal was dismissed.
Assessee, engaged in liquor retail trading, had filed return declaring ₹4.35 crore. AO in scrutiny made an addition of ₹4.22 crore u/s 68 treating unsecured loans from 7 creditors as unexplained cash credits, citing non-response to notices u/s 133(6). CIT(A) granted relief of ₹3.71 crore by accepting loans from 4 creditors but upheld addition of ₹51 lakh pertaining to 3 creditors – Shri Vinod Kumar (₹20 lakh), Shri Jagjit Singh (₹11 lakh) & Smt. Pawandeep Kaur (₹20 lakh).
Before Tribunal, Assessee contended that Loans were taken & repaid in the same year through banking channels. PAN, Aadhaar, ITRs & bank statements of creditors were filed. Creditor Shri Vinod Kumar was critically ill & later deceased, which explained absence of confirmation. Reliance placed on CIT v. Varinder Rawlley (2014) 51 taxmann.com 524 (P&H HC), holding that loans squared up in the same year cannot be treated as unexplained.
