ITO Vs Agility Consultancy Private Limited (ITAT Mumbai)
The Mumbai ITAT dismissed the Revenue’s appeal against deletion of a ₹3.05 crore addition under Section 68 for AY 2013-14. The assessee, a private limited consultancy company, had received ₹2.80 crore as an unsecured loan from M/s PNR Exim Pvt. Ltd. and ₹25 lakh as share application money from M/s Blow Agency Pvt. Ltd. The AO treated both transactions as bogus based on an Investigation Wing report.
Before the CIT(A), the assessee furnished corporate registration details, PAN, addresses, directors’ details, incorporation certificates, audited financial statements, ITRs, cash-flow statements and business profiles. It was also established that the amounts had been repaid through banking channels before completion of assessment, with substantial repayments occurring before issuance of notice under Section 143(2). The CIT(A) deleted the addition.
The Tribunal noted that the Revenue produced no material to discredit the documentary evidence or establish that it was false or fabricated. It further observed that the AO primarily relied on the Investigation Wing report without conducting an independent enquiry to rebut the assessee’s evidence. The Tribunal held that the assessee had discharged its primary onus under Section 68 and found no infirmity in the CIT(A)’s order. The deletion of the ₹3.05 crore addition was upheld and the Revenue’s appeal was dismissed.
