DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE -2(4), KOLKATA V. M/S GD REALITY PRIVATE LIMITED, KOLKATA

ITA 622/KOL/2025

AI Insights

This case involves an appeal by the Revenue against the order of the CIT(A), National Faceless Appeal Centre, Delhi, concerning the assessment year 2014-15. The primary issue was the addition of a loan received by the assessee, M/s GD Reality Private Limited, from M/s Gangadham Tracon Pvt. Ltd., which amounted to Rs. 50 lakhs. The CIT(A) had deleted this addition, noting that the loan was repaid in the subsequent assessment year, 2016-2017. The Revenue contended that the evidence of repayment was not produced before the Assessing Officer, and despite notices under section 133(6) of the Income Tax Act, there was no response from the assessee. The Tribunal decided to restore the matter to the Assessing Officer for a fresh examination, emphasizing the need for the assessee to substantiate the loan transaction and its repayment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 705838 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2025
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Assessment Year: 2014-2015
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S.B. CHAKRABORTHY
• Assessee Lawyers: MIRAZ D. SHAH
• Keywords: Opportunity of being heard; TDS

Judgement Text

" आयकर अपीलीय अधिकरण, “एस.एम.सी” न्यायपीठ, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH KOLKATA श्री जाजज माथन, न्याययक सदस्य क े समक्ष । BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER आयकर अपील सं/ITA No.622/KOL/2025 (नििाारण वर्ा / Assessment Year : 2014-15) Dy. Commissioner of Income Tax, Central circle-2(4) Office of the DCIT, Central Circle- 2(4), Kolkata, Aaykar Bhavan Poorva, 4th Floor, 110 Shantipally, E.M. Bypass, Kolkata-700017 Vs M/s GD Reality Private Limited 32, OM Tower 4th floor, J.L Nehru Road Chowringhee, Kolkata- 700071, West Bengal PAN No. : AADCG 5596 P (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) राजस्व की ओर से /Revenue by : Shri S.B. Chakraborthy, Addl. CIT-Sr.DR नििााररती की ओर से /Assessee by : Shri Miraz D. Shah, AR सुनवाई की तारीख / Date of Hearing : 03/07/2025 घोषणा की तारीख/Date of Pronouncement : 03/07/2025 आदेश / O R D E R This is an appeal filed by the Revenue against the order of the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 23.01.2025, passed for the assessment year 2014-15. 2. Shri S.B.Chakraborthy, ld.Sr. DR appeared on behalf of the revenue and Shri Miraz D. Shah, ld. AR appeared on behalf of the assessee. 3. It was submitted by the ld.Sr. DR that in the course of assessment proceedings the Assessing Officer has questioned the loan received by the assessee from M/s Gangadham Tracon Pvt. Ltd. to an extent of Rs.50 lakhs. It was the submission that the ld.CIT(A) had deleted the addition by holding that the loan advances were repaid in the subsequent assessment year. It was the submission that evidence of repayment of the loan was not produced before the Assessing Officer. It was the submission that the Assessing Officer had also issued notice u/s.133(6) of the Act but there is ITA No.622/KOL/2025 2 no response. Ld.Sr. DR drew my attention to page 23 of the assessment order to submit that even the Inspector had been sent for verification in respect of the company and the company was not found to be exist. It was the submission that the order of the ld.CIT(A) giving relief to the assessee without considering the assessment order and by considering the fresh evidence, is liable to be reversed. 4. In reply, ld.AR on behalf of the assessee submitted that the loans have been repaid during the immediately succeeding assessment year being A.Y.2016-2017. It was the submission that the loan has taken during the assessment year 2014-2015, TDS was deducted. It was the submission that the assessee has produced the ledger account of the loan, the details of the company from which the loan has been received and such other details as has been called for by the Assessing Officer. It was the submission that the assessee having proven the entire transaction in regard to the loan, the order of the ld.CIT(A) is liable to be upheld. 5. On this point, it was argued by the ld. Sr. DR that he may produce the evidence in respect of repayment of loans before the Assessing Officer to which the ld. AR submitted that he needs more time to file the details of the paper book which has been submitted before the Assessing Officer. This was denied to the ld.AR. 6. I have considered the rival submissions. A perusal of the assessment order clearly shows that the Assessing Officer has issued notice u/s.133(6) of the Act to the director of the assessee company. The ld.AR also placed ITA No.622/KOL/2025 3 before me a list of the directors of the assessee’s company, which reads as follows :- . 7. It was the submission that the persons mentioned by the Assessing Officer have never been the director of the assessee’s company. The lender company has not produce nor responded to the notices issued u/s.133(6) of the Act. This being so, in the interest of justice, the issues in this appeal are restored to the file of Assessing Officer for adjudication afresh after granting the assessee adequate opportunity of being heard. The assessee is directed to produce such documents as called for by the ITA No.622/KOL/2025 4 Assessing Officer to prove the transaction of the receipt of the loan and repayment of the loan before the Assessing Officer. 8. In the result, appeal of the Revenue is partly allowed for statistical purposes. Order dictated and pronounced in the open court on 03/07/2025. Sd/- (जाजज माथन) (GEORGE MATHAN) न्यानयक सदस्य / JUDICIAL MEMBER कोलकाता Kolkata; ददनाांक Dated 03/07/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : sआदेशािुसार/ BY ORDER, (Assistant Registrar) Income Tax Appellate Tribunal, Kolkata 1. अपीलाथी / The Appellant- 2. प्रत्यथी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कोलकाता / DR, ITAT, Kolkata 6. गार्ज फाईल / Guard file. सत्यापपत प्रयत //True Copy// "