ACIT Vs KBJ Developers Pvt. Ltd. (ITAT Mumbai)
Title 1: 68 Unexplained Loans Deleted: Source-of-Source Not Applicable Before AY 2013-14
Description: The ITAT Mumbai deleted a Rs.34.65 crore addition under Section 68 for unsecured loans, ruling that the requirement to prove the “source of source” only applies from A.Y. 2013-14 onwards. The Tribunal held that proving the identity, genuineness, and creditworthiness of the loan creditors was sufficient for the year under appeal.
Title 2: Loan Addition Quashed: Creditor Non-Response Alone Can’t Vitiate Documentary Proof
Description: ITAT ruled that mere non-response to Section 133(6) notices cannot render loans non-genuine when the taxpayer provides comprehensive documentation, including ITRs and bank statements. The decision deleted a substantial Rs.34.65 crore loan addition, emphasizing that documentary evidence outweighs the creditors’ failure to appear.
Title 3: Property Valuation Addition Deleted: 56(2)(x) Not Applicable Before AY 2017-18
Description: The Tribunal deleted a Rs.1.92 crore addition arising from the difference between the sale consideration and stamp duty value of a property. The ruling confirmed that the deeming fiction of Section 56(2)(x) for taxing property valuation differences was not in force for the relevant assessment year, leading to the addition’s deletion.
Title 4: Tax Appeal Win: ITAT Deletes Rs.35.14 Cr Addition by Clarifying Law Applicability
