SKYBRIDGE REAL ESTATES LLP,KOLKATA V. ACIT, CIRCLE 34, KOLKATA

CO 38/KOL/2025

AI Insights

The case involves an appeal by the revenue against the order of the CIT(A) which had deleted the addition of Rs.20,25,00,000 representing two unsecured loans to Skybridge Real Estates LLP for the assessment year 2018-19. The revenue contended that the creditworthiness and genuineness of the lenders were not proved, while the assessee argued that the loans were from legitimate companies and the amounts were corrected in the audit report. The tribunal found no reason to interfere with the CIT(A)'s order as the revenue failed to dislodge the findings of fact.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772771 (ITAT-KOLKATA)
• Appeal Type: Cross Objection
• Pronouncement Date: 27-08-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SANAT KR. RAHA
• Assessee Lawyers: PRIYANKA SALARPURIA; N. S. SAINI; FILING REVISED AUDIT
• Section: 143(3)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, KOLKATA BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ITA No.482/Kol/2025 Assessment Year: 2018-19 ACIT, Circle-34, Kolkata Vs Skybridge Real Estates LLP 5th Floor, R. No.507, Mangalam-A, 24, Hemant Basu Sarani, W.B – 700001. (PAN: ACVFS7139R) (Appellant) (Respondent) C.O. No.38/Kol/2025 (Arising out of I.T.A. No.482/Kol/2025) Assessment Year: 2018-19 Skybridge Real Estates LLP 5th Floor, R. No.507, Mangalam-A, 24, Hemant Basu Sarani, W.B – 700001. (PAN: ACVFS7139R) Vs ACIT, Circle-34, Kolkata (Cross-objector) (Respondent) Present for: Assessee by : Smt. Priyanka Salarpuria and N.S. Saini, AR Revenue by : Shri Sanat Kr. Raha, CIT-DR Date of Hearing : 27.08.2025 Date of Pronouncement : 27.08.2025 ORDER Per Bench : This is an appeal filed by the revenue against the order of the National Faceless Appeal Centre [hereinafter referred to as the ‘CIT(A)’] in appeal no.NFAC/2017-18/10046007 dated 19.07.2024 for assessment Printed from counselvise.com ITA No.482/Kol/2025 & C.O. No.38/Kol/2025 Skybridge Real Estates LLP 2 year 2018-19 and the assessee has filed cross-objection against the revenue’s appeal. 2. Smt. Priyanka Salarpuria and N.S. Saini represented on behalf of the assessee and Sanat Kr. Raha, DR represented on behalf of the revenue. 3. It was submitted by the ld. DR that in the course of assessment, the Assessing Officer has made an addition of Rs.20,25,00,000/- representing two unsecured loans, one of Rs.19,50,00,000/- from Babcock Borsing Ltd. and another of Rs.75,00,000/- from Williamson Financial Services Ltd. It was the submission that the Assessing Officer was of the view that the creditworthiness and genuineness of the said two unsecured lenders were not proved by the assessee. It was the submission that on appeal, the ld. CIT(A) has deleted the addition. It was the submission that in respect of Babcock Borsing Ltd., the ld. CIT(A) first considered the fact that the loan was of an amount of Rs.19.5 crores but only 1.95 crores. It was the submission that subsequently, the ld. CIT(A) on the ground that the two companies were not paper companies or shell companies deleted the addition. It was the submission that the order of the ld. CIT(A) be reversed. 4. In reply, the ld. AR drew our attention to para 7.6 and 7.9 of the order of the ld. CIT(A). It was the submission that the variation from 19.50 to 1.95 was on account of mistake committed by the auditor in the audit report. It was the submission that the corrected audit report has also been filed before the Assessing Officer. It was the submission that the assessments of both Babcock Borsing Ltd. and Williamson Financial Services Ltd. for the assessment year 2018-19 which is also the impugned assessment year before us had been completed u/s 143(3) of the Act as has been mentioned in para 7.9 of the order of the ld. CIT(A). It was the submission that order of the ld. CIT(A) on this issue may be confirmed. Printed from counselvise.com ITA No.482/Kol/2025 & C.O. No.38/Kol/2025 Skybridge Real Estates LLP 3 5. We have considered the rival submissions. A perusal of the order of the ld. CIT(A) more specifically at para 7.6 shows that the figure of loan in the case of Babcock Borsing Ltd. is not 19.85 crores but 1.95 crores. This error has also been corrected by the assessee by filing revised audit report. Admittedly, the balance sheet of the assessee also shows same amount of Rs.1.95 crores. In regard to addition of Rs.1.95 crores and 75 lakhs deleted by the ld. CIT(A), we find that in para 7.9 of the order of the ld. CIT(A), the assessments u/s 143(3) of the Act in respect of both companies have been completed by the Assessing Officer and no adverse interference has been drawn in the said assessment orders. This being so obviously, the identity and creditworthiness of the said companies stand proved. The transactions were done through banking channel and the genuineness of the transactions also stands confirmed. In the circumstances, as the revenue has not able to dislodge any of the findings of fact as arrived by the ld. CIT(A), we find no reason to interfere in the order of the ld. CIT(A). Consequently, the appeal of the revenue stands dismissed. 6. In respect of cross-objection filed by the assessee in C.O No.38/Kol/2025, the ld. AR has submitted that she desires to withdraw the C.O and signed to that effect. Consequently, the cross-objection filed by the assessee stands dismissed as withdrawn. 7. In the result, both the appeal filed by the revenue and cross- objection filed by the assessee are dismissed. Kolkata, the 27th August, 2025. Sd/- Sd/- [Rajesh Kumar] [George Mathan] लेखा सदèय/Accountant Member ÛयाǓयक सदèय/Judicial Member Dated: 27.08.2025. RS Printed from counselvise.com ITA No.482/Kol/2025 & C.O. No.38/Kol/2025 Skybridge Real Estates LLP 4 Copy of the order forwarded to: 1. Appellant - 2. Respondent – 3. CIT(A)- 4. CIT- , 5. CIT(DR), //True copy// By order Assistant Registrar, Kolkata Benches Printed from counselvise.com "