GOPAL AGARWAL,DHANBAD V. ITO WARD -1(3), DHANBAD, DHANBAD

ITA 34/RAN/2024

AI Insights

The case involves an appeal by Gopal Agarwal against the order of the CIT(A) which confirmed the disallowance made by the Assessing Officer (AO) regarding unsecured loans taken from M.A. Financial Service Pvt Ltd and M/s. Fidelite Commosales Pvt Ltd during the assessment year 2017-18. The assessee argued that the loans were repaid in full in the subsequent assessment year, and thus, the additions made should be deleted. The revenue supported the decisions of the AO and CIT(A). The Tribunal, after reviewing the submissions and evidence, including the ledger accounts showing the repayments, ruled in favor of the assessee.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 633159 (ITAT-RANCHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-06-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PER BENCH; SHRIKHUBCHAND T PANDYA; LD
• Assessee Lawyers: SHRIDEVESH PODDAR

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, BEFORES/ AND RATNESH NANDAN SAHAY, ACCOUNTANT MEMBER Gopal Agarwal, C/O Bhupendra Agarwal, Kendua Bazar, Near Bansal Electric Kusunda, Dhanbad PAN/GIR No. (Appellant Revenue by Per Bench This is an appeal filed by the assessee against the order of the ld CIT(A) dated in Appeal No. for the assessment year. 2. Shri Khubchand T Pandya, ld SR DeveshPoddar,ld AR appeared for the assessee. IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI S/SHRI GEORGE MATHAN, JUDICIAL AND RATNESH NANDAN SAHAY, ACCOUNTANT MEMBER ITA No.34/RAN/2024 Assessment Year: 2017-18 Gopal Agarwal, C/O Bhupendra Agarwal, Kendua Bazar, Near Bansal Electric Kusunda, Dhanbad Vs. ITO Ward-1(3), Dhanbad .ACCPA 5075 M (Appellant) .. ( Respondent Assessee by : Shri Devesh Poddar, Adv Revenue by : Shri Khubchand T Pandya, ld Sr DR Date of Hearing : 11/06/202 Date of Pronouncement :11/06/ O R D E R This is an appeal filed by the assessee against the order of the ld CIT(A) dated in Appeal No. for the assessment year. Shri Khubchand T Pandya, ld SR DR appeared for the revenue and Shri ld AR appeared for the assessee. P a g e 1 | 5 IN THE INCOME TAX APPELLATE TRIBUNAL, , JUDICIAL MEMBER AND RATNESH NANDAN SAHAY, ACCOUNTANT MEMBER 1(3), Respondent) Devesh Poddar, Adv Khubchand T Pandya, ld Sr DR 2025 /2025 This is an appeal filed by the assessee against the order of the ld CIT(A)- DR appeared for the revenue and Shri ITA No.34/Ran/2024 Assessment Year : 2017-18 P a g e 2 | 5 3. It was submitted by ld AR that the only issue in assessee’s appeal was against the action of the ld CIT(A) in confirming the disallowance made by the AO in respect of unsecured loan taken from M.A. Financial Service Pvt Ltd., and M/s. FideliteCommosales Pvt Ltd.,. It was the submission that during the impugned assessment year, the assessee had taken loan of Rs.7 lakhs from M.A. Financial Service Pvt Ltd., and repaid Rs.2 lakhs during the relevant assessment year and the balance was only Rs.5 lakhs. It was the submission that the balance of Rs.5 lakhs was also repaid during the immediately succeeding assessment year being A.Y. 2018-19. Ld AR placed before us the ledger copy of the said unsecured creditor as follows: 4. Similarly, in respect of FideliteCommosales Pvt Ltd., the assessee had taken loan during the impugned assessment year to an extent of Rs.9,50,000/- and repaid Rs.50,000/- during the assessment year itself and the balance ITA No.34/Ran/2024 Assessment Year : 2017-18 P a g e 3 | 5 Rs.9,00,000/- was also repaid during the immediately succeeding assessment year. The ledger account of FideliteCommosales Pvt Ltd., was shown as follows: “ ITA No.34/Ran/2024 Assessment Year : 2017-18 P a g e 4 | 5 5. It was the submission that as the loans have been taken and repaid during the immediately succeeding assessment year, the addition made by the AO and confirmed by ld CIT(A) be deleted. 6. In reply, ld Sr DR vehemently supported the orders of the AO and ld CIT(A). 7. We have considered the rival submissions. A perusal of the facts in the present case clearly shows that the assessee has also repaid the loans during the immediately succeeding assessment year. As the loans had already been squared up, there is no basis in retaining the addition. The ledger accounts of both the unsecured creditors clearly show the repayment and the repayment has not been disputed by the Revenue. This being so, the addition made in respect of the unsecured loans taken from both the parties i.e.M.A. Financial Service Pvt Ltd., and M/s. FideliteCommosales Pvt Ltd. Stands deleted. 8. In the result, appeal of the assessee stands allowed. Order dictated and pronounced in the open court on 11/06/2025. Sd/- Sd/- (RATNESH NANDAN SAHAY) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER Ranchi; Dated 11/06/2025 B.K.Parida, SPS (OS) ITA No.34/Ran/2024 Assessment Year : 2017-18 P a g e 5 | 5 Copy of the Order forwarded to : By order Sr.Pvt.secretary ITAT, Ranchi 1. The Appellant : Gopal Agarwal, C/O Bhupendra Agarwal, Kendua Bazar, Near Bansal Electric Kusunda, Dhanbad 2. The Respondent: ITO Ward-1(3), Dhanbad 3. The CIT(A)-NFAC, Delhi 4. Pr.CIT,Ranchi 5. DR, ITAT, 6. Guard file. //True Copy// "