Gehna Impex Pvt. Ltd Vs JCIT (OSD) (ITAT Delhi)
The appeal before the Income Tax Appellate Tribunal, Delhi Bench, arose from an order dated 28 May 2025 passed under section 250 of the Income-tax Act, 1961. The Assessing Officer had alleged that during FY 2015–16 the assessee received ₹1.92 crore from alleged bogus entry providers and, on that basis, made additions of ₹1.92 crore under section 69A, ₹5.77 lakh under section 69C by disallowing interest on the loans, and ₹2.66 lakh as alleged commission. On appeal, the Commissioner (Appeals) granted substantial relief but sustained an addition of ₹59.72 lakh on the footing that it represented repayment of loans taken in earlier years but allegedly repaid from unexplained sources. The assessee challenged this sustained addition before the Tribunal, while not pressing grounds relating to jurisdiction. Before the Tribunal, the assessee demonstrated from the findings of the Commissioner (Appeals) that the impugned amount was accepted as repayment of earlier loans and supported the source of repayment with bank statements showing sufficient funds and explained credit entries. As an alternative submission, it was highlighted that for AY 2014–15 the Commissioner (Appeals) had accepted the very same loans as genuine, which were now being repaid, and the relevant appellate order was placed on record. The Department relied on the orders of the lower authorities. After examining the records and submissions, the Tribunal held that during the year under consideration there was only repayment of loans taken in an earlier year, that the loans had already been accepted as genuine in the earlier year, and that the repayment had been made from explained sources. Finding no merit in the addition sustained by the Commissioner (Appeals), the Tribunal directed its deletion and allowed the appeal by order pronounced on 17 December 2025.
