Case Law Details
DCIT Vs Alom Extrusions Ltd. (ITAT Kolkata)
The case of DCIT Vs Alom Extrusions Ltd. involves an appeal by the Department against the Commissioner of Income Tax (Appeals) – 27, Kolkata (CIT(A)). The appeal challenges the order dated 14th June 2023, passed under section 250 of the Income Tax Act, 1961. The primary issue revolves around the addition of Rs.3,00,00,000/- as unexplained cash credit on account of unsecured loans.
Background: A search and seizure operation conducted under section 132 of the Income Tax Act on 26th November 2015 revealed no incriminating material for the assessment year under consideration. Nevertheless, the assessment was conducted under section 153A of the Act.
The Assessing Officer noted the receipt of unsecured loans amounting to Rs.3,00,00,000/- from three creditors. Despite the assessee providing documents to establish the identity and creditworthiness of the creditors and the genuineness of the transaction, the Assessing Officer was unsatisfied, leading to the addition of the loan amount as undisclosed income.
CIT(A)’s Decision: The CIT(A), in a comprehensive order, annulled the addition made by the Assessing Officer. The CIT(A) highlighted that the assessee had diligently furnished all details related to the loan transactions, including documents verifying the identity and creditworthiness of the creditors. Moreover, the financials of the creditors were made available.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
