Sambhav Buildwell (P) Ltd. Vs ACIT (ITAT Delhi)
The Delhi ITAT allowed Sambhav Buildwell (P) Ltd.’s appeal for A.Y. 2014-15 and deleted additions of Rs. 3,25,00,000/- under section 68 and Rs. 3,25,000/- under section 69C of the Income Tax Act, 1961. The Assessing Officer had treated loans of Rs. 1,00,00,000/- from M/s. I. Tech Insurance Brokers P. Ltd. and Rs. 2,25,00,000/- from M/s. Sridhar Portfolio Management P. Ltd. as accommodation entries, principally relying on statements recorded from the assessee’s Director and investigation concerning alleged entry providers. The assessee subsequently furnished lender confirmations, ITR acknowledgments, audited financial statements, bank statements, PAN and other details before the CIT(A). The Tribunal noted that the loans were routed through banking channels, reflected in audited financial statements, and that the lenders had own funds of Rs. 15.15 crores and Rs. 13.76 crores respectively. It held that the three ingredients of section 68—identity, creditworthiness and genuineness—were fulfilled and that no corroborative search material supported the allegation that the loans were accommodation entries. The Tribunal accordingly deleted both additions and allowed the appeal.
Facts and Assessment Proceedings
The appeal in ITA No.1938/Del/2022 for A.Y. 2014-15 arose from the order of the Commissioner of Income Tax (Appeals)-26, Delhi in appeal No.10348/17-18 dated 21.07.2022, against the assessment order passed under section 153A r.w.s. 143(3) of the Income Tax Act, 1961 dated 20.12.2017 by the ACIT, Circle 13, New Delhi.
