Value Plus Retail Private Limited Vs DCIT (ITAT Kolkata)
Unsecured Loans from Relatives Held Genuine – Section 68 Addition & Interest Disallowance Deleted
The Kolkata ITAT partly allowed the assessee’s appeal and deleted the addition of ₹3.95 crore made under Section 68 in respect of unsecured loans taken from related parties and family members. The Tribunal noted that the assessee had furnished complete documentary evidence including confirmations, ITRs, bank statements and repayment details, clearly establishing the identity, creditworthiness and genuineness of the lenders. It was further observed that the lenders were salaried persons with regular sources of income and that the loans were repaid in subsequent years, a fact not disputed by the Revenue.
Relying on a series of recent Calcutta High Court decisions including PCIT v. Rahul Premier India Agency Pvt. Ltd., Narayan Tradecom Pvt. Ltd., Alom Extrusions Ltd. and others, the Tribunal held that once primary onus is discharged, the addition under Section 68 cannot be sustained merely on suspicion. Consequently, the related disallowance of interest on such loans was also deleted as consequential.
On the issue of disallowance under Section 40A(ia) for delayed TDS deposit, the Tribunal restored the matter to the Assessing Officer for fresh verification since the assessee claimed to have deposited TDS before the due date of filing the return. The appeal was thus partly allowed with substantial relief to the assessee.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
