ACIT Vs Sparsh Property Private Limited (ITAT Delhi)
Unsecured Loan Addition u/s 68 Deleted – Filatex Group Loans Held Genuine
The ITAT Delhi dismissed the Revenue’s appeal and upheld the CIT(A)’s order deleting addition of ₹60 lakh made u/s 68 along with disallowance of interest and alleged commission. The AO had treated loans received from ANM Fincap Pvt. Ltd. and Satsal Finlease Pvt. Ltd. as accommodation entries based mainly on search statements and investigation findings in the Filatex group. The Tribunal noted that the assessee discharged the onus by filing confirmations, bank statements, audited financials, ITR acknowledgements and replies u/s 133(6), thereby proving identity, creditworthiness and genuineness of lenders. It also relied on earlier co-ordinate bench decisions in the Filatex group where similar loans from the same entities were held genuine. Since no direct evidence linked the assessee with accommodation entries and repayments with TDS deduction were established, deletion of addition u/s 68, interest disallowance and commission addition was confirmed and both Revenue appeal and assessee’s cross-objection were dismissed
FULL TEXT OF THE ORDER OF ITAT DELHI
The appeal filed by the Revenue and Cross Objection by the Assessee are directed against the order passed by the Ld. Commissioner of Income Tax (Appeals-23), New Delhi dated 1.9.2024 for A.Y. 2016-17.Since appeal and Cross Objection both are interconnected, hence, the same were heard together and disposed of by this common order for the sake of convenience.
