VINAYAK OIL & FACTS PVT. LTD.,HOWRAH V. A.C.I.T., CIRCLE - 13(1), KOLKATA

ITA 2082/KOL/2024

AI Insights

The case involves Vinayak Oil & Fats Private Limited appealing against the order of the National Faceless Appeal Centre, Delhi, which confirmed the addition of \\u20b960 lacs as unexplained cash credit by the Assistant Commissioner of Income Tax. The addition was initially made following a reopening of the assessee's case under section 147 of the Income Tax Act, where it was alleged that the loan from M/s Bluemotion Exports Pvt. Ltd. was unexplained. The Tribunal examined the evidence provided, including loan confirmations and bank statements, and found that the loan was repaid and interest was duly paid with TDS deposited, thus supporting the assessee's claim.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474012 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Other Referred Cases: CIT vs. Ayachi Chandrashekhar Narsangji (2014) 42 taxmann.com 251 (Gujarat)
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHIJIT ADHIKARI
• Assessee Lawyers: A.K. TIRBRIWAL
• Keywords: Set aside; Unexplained cash credit
• Section: 147; 148; 68; 133(6)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, AM AND SHRI PRADIP KUMAR CHOUBEY, JM ITA No.2082/KOL/2024 (Assessment Year: 2015-16) Vinayak Oil & Fats Private Limited 29.5, Milestone, Jalan Complex, N.H. 6,Vill. Baniara, P.O. Begri Industrial Estate Howrah 711411 Vs. Asst. Commissioner of income Tax, Circle 13(1) Aaykar Bhavan Poorva, 110, Shantipally, E.M. Bypass, Kolkata-700107 (Appellant) (Respondent) PAN No. AAACV9790K Assessee by : Shri A.K. Tirbriwal, AR Revenue by : Shri Abhijit Adhikari, DR Date of hearing: 10.03.2025 Date of pronouncement : 17.03.2025 O R D E R Per Rajesh Kumar, AM: This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 12.08.2024 for the AY 2015-16. 02. The only issue pressed at the time of hearing is against the order of ld. CIT (A) confirming the addition of ₹60 lacs as made by the ld. AO in respect of loan taken from M/s Bluemotion Exports Pvt. Ltd. as unexplained cash credit. 03. The facts in brief are that the assessee filed the return of income on 30.09.2015, declaring total income of ₹60,75,580/-. The case of the Page | 2 ITA No.2082/KOL/2024 Vinayak Oil & Facts Pvt. Ltd.; A.Y. 2015-16 assessee was reopened u/s 147 of the Act by issuing notice u/s 148 of the Act on 29.03.2021, which was complied with by the assessee by filing the return of income on 15.04.2021. Thereafter the statutory notices along with the questionnaire were issued to the assessee and the assessee duly replied to the said questionnaires. Even the notice u/s 133(6) of the Act issued to M/s Bluemotion Exports Pvt. Ltd., which was duly responded by the said lender. The assessee furnished before the ld. AO the name, address, PAN number, auditor accounts, bank statement and loan confirmation etc in respect of the lender. In para 7, the ld. AO mentioned that the said lender did not comply with the notice issued u/s 133(6) of the Act. Finally, the ld. AO added the amount as unexplained cash credit u/s 68 of the Act to the income of the assessee in the assessment framed u/s 147 read with section 144B of the Act dated 30.03.2022. 04. In the appellate proceedings, the ld. CIT (A) confirmed the addition. 05. After hearing the rival contentions and perusing the materials available on record, we find that the assessee has raised unsecured loan from the above said party of ₹60 lacs on which interest was duly paid after deducting Tax Deducted at source, which was also deposited in the Government revenue. We also note that the loan was repaid by the assessee on 01.04.2015 and the interest outstanding was paid on 16.04.2015. Therefore, the loan taken by the assessee cannot be added as unexplained cash credit. The case of the assessee find force from the decision of Hon'ble Gujarat High Court in the case of CIT vs. Ayachi Chandrashekhar Narsangji (2014) 42 taxmann.com 251 (Gujarat), wherein it has been held that where the loan has been repaid no addition can be made in respect thereof. Even on merit, the assessee has filed all the evidences such as loan confirmation, bank Page | 3 ITA No.2082/KOL/2024 Vinayak Oil & Facts Pvt. Ltd.; A.Y. 2015-16 statement, etc. and AO has not pointed out any discrepancy / defect in the said documents. Besides, the loan creditor has filed the reply to notice u/s 133(6) of the Act, a copy of which is available at page nos. 126 to 167 of the Paper Book whereas the AO denied the same. Therefore, the observation of the ld. AO that 133(6) was not complied with, is factually incorrect. Hence, we set aside the order of ld. CIT (A) and direct the AO to delete the addition. 06. In the result, the appeal of the assesseeis allowed. Order pronounced in the open court on 17.03.2025. Sd/- Sd/- (PRADIP KUMAR CHOUBEY) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated: 17.03.2025 Sudip Sarkar, Sr.PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, 5. Guard file. BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Kolkata "