Saroj Agarwal Vs ACIT (ITAT Delhi)
The appeal arose from the order dated 25.11.2025 passed under Section 250 of the Income Tax Act, 1961 by the Addl./JCIT(Appeals)-2, Surat. The dispute related to loans amounting to Rs.41,00,000 received by the assessee from five persons.
During assessment proceedings, the Assessing Officer examined the documents and accepted the loans received from Abdul Rahuf and Shubham Agarwal. However, loan amounts received from Faeem Ahmad, Firojali, and Waseem aggregating to Rs.24,00,000 were added under Section 68 of the Act.
The assessee challenged the addition before the Addl./JCIT(Appeals). The appellate authority granted partial relief by accepting the loans from Faeem Ahmad and Firojali. However, the loan received from Waseem continued to be treated as unverified on the grounds that it was interest-free, no tax had been deducted at source, and details regarding repayment of the loan had not been furnished.
Aggrieved by the partial relief, the assessee approached the Income Tax Appellate Tribunal. Before the Tribunal, the assessee submitted that the loan obtained from Waseem had in fact been repaid on 04.01.2020. In support of this contention, bank documents were produced and placed in the paper book. The assessee argued that although these documents were not before the Assessing Officer, they directly addressed the issue of repayment and were relevant for determining whether the addition under Section 68 should be sustained.
