A.C.I.T., CIRCLE-2, GWALIOR V. M/S CHAHAT INFRASTRUCTURE PVT. LTD., INDORE

ITA 53/AGR/2014

AI Insights

The case involves an appeal by the Assistant Commissioner of Income Tax, Circle-2, Agra against M/s Chahat Infrastructure Pvt. Ltd. concerning the Assessment Year 2009-10. The appeal arose from an order by the Commissioner of Income Tax (Appeals), Gwalior, which had deleted the additions made by the Assessing Officer under section 68 of the Income Tax Act, 1961. The additions pertained to unsecured loans and sundry creditors that were questioned during the assessment following a search operation under section 132 of the Act. The Tribunal's decision was based on the comprehensive documentation and evidence provided by the assessee, which included confirmations, bank statements, and tax returns of the lenders.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126444 (ITAT-AGRA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-04-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARUN KUMAR YADAV LD.
• Assessee Lawyers: SANJAY KUMAR; LD
• Keywords: Dismissed; Commissioner; Commissioner of Income Tax; Deleted; 153A
• Section: 143(3); 132; 153A; 68

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “DB” BENCH, AGRA BEFORE HON’BLE SHRI SATBEER SINGH GODARA, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं. / ITA No. 53/Agr/2014 (िनधा \u0010रणवष\u0010 / Assessment Year: 2009-10) ACIT, Circle-2, Agra. बनाम/ Vs. M/s. Chahat Infrastructure Pvt. Ltd. 201, Starlit Tower, Y.N. Road, Indore. \u0002थायीलेखासं./जीआइआरसं./PAN/GIR No. AACCC-9764-A (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ कीओरसे/ Appellant by : Dr. Arun Kumar Yadav – Ld. CIT-DR थ कीओरसे/Respondent by : Sh. Sanjay Kumar, CA – Ld. AR सुनवाईकीतारीख/Date of Hearing : 19-02-2025 घोषणाकीतारीख /Date of Pronouncement : 22.04.2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by revenue for Assessment Year (AY) 2009-10 arises out of an order passed by Ld. Commissioner of Income Tax (Appeals), Gwalior [CIT(A)] on 06-12-2013 in the matter of an assessment framed by Ld. AO u/s 143(3) r.w.s. 153A of the Act on 09-11-2011. The sole grievance of the revenue is deletion of addition made by Ld. AO u/s 68 for Rs.244.13 Lacs and Rs.4.05 Lacs respectively. Having heard rival submissions, the appeal is disposed-off as under. The assessee group was subjected to search action u/s 132 on 11-03-2010 on the basis of which impugned assessment was framed. The order of Ld. CIT(A) is based on assessee’s submissions as well as remand report of Ld. AO. 2. The assessee company is associated entity of M/s K.S. Oil Mills of Gwalior. The assessee reflected unsecured loans and sundry creditors in 2 the financial statements. The assessee adduced various evidences to demonstrate the genuineness of the entities; however, Ld. AO added both these items to the income of the assessee u/s 68. The unsecured loan of Rs.244.13 Lacs was taken from M/s Ashish Rasnidhi Enterprises. The Sundry Creditor of Rs.4.05 Lacs represents director remuneration of Shri Arun Agarwal. 3. The Ld. CIT(A), in the light of assessee’s elaborate written submissions as well as remand report of Ld. AO, rendered its adjudication on unsecured loan in para-9. It was held that the assessee discharged the onus of proving the identity, capacity and creditworthiness of the loan creditor. The assessee duly furnished confirmation, bank statement of lender, income tax return, statement of affair of the lender. On these facts, the impugned addition of Rs.244.13 Lacs was deleted. The adjudication on sundry creditor has been rendered in para-13 of the impugned order. It was noted that the same was director’s remuneration which was offered to tax by the payee. The assessee filed requisite documents to establish the genuineness of the same. Accordingly, the impugned addition was deleted against which the revenue is in further appeal before us. 4. The aforesaid findings as rendered by Ld. CIT(A) remain uncontroverted before us. The adjudication is based on documents furnished by the assessee during assessment proceedings as well as during remand proceedings. It could be seen that the assessee was successful in discharging the onus of proving the primary ingredients of Sec.68 with respect to unsecured loans as well as with respect to sundry creditor. This being so, we see no reason to interfere in the impugned order, in any manner. 3 5. The appeal stand dismissed. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963. Sd/- Sd/- (SATBEER SINGH GODARA) (MANOJ KUMAR AGGARWAL) 3ा ियक सद4 /JUDICIAL MEMBER लेखा सद4 /ACCOUNTANT MEMBER Dated: 22.04.2025 आदेश की 6ितिलिप अ8ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. थ /Respondent 3. आयकरआयु3/CIT 4. िवभागीय ितिनिध/DR 5. गाड9फाईल/GF ASSISTANT REGISTRAR ITAT AGRA "