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TMI Blog2024 (12) TMI 1418X X X X Extracts X X X X X X X X Extracts X X X X ..... So, the contravention of Section 68 related identity, creditworthiness and transaction trough banking channel are ruled out. Interest on the alleged unsecured loan - For rest of the interest was pertained to loan of earlier years and the part of interest of loan where the loan was repaid during the impugned assessment year are also followed the same principle laid down by the orders mentioned above. We do not find any reason to interfere in the impugned appeal order. Decided against revenue. - Shri Anikesh Banerjee, Judicial Member And Shri Rakesh Mishra, Accountant Member For the Assessee : Shri S. Jhajharia, AR For the Revenue : Shri Anindya Kumar Bandopadhyay, DR ORDER PER ANIKESH BANERJEE, JUDICIAL MEMBER: Instant appeal of the Revenue was filed against the order of the National Faceless Appeal Centre, Delhi [in brevity the learned CIT (A) ], order passed under Section 250 of the Income-tax Act, 1961 (in brevity, the Act ) for A.Y. 2013-14, date of order 8th November 2023. The impugned order was emanated from the order of the learned National Faceless Assessment Centre, Delhi (in brevity, the learned AO ), order passed under Section 147 read with section 144B of the Act, date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ld. DR prayed to uphold the assessment order. 6. The ld. Authorised Representative (in short the ld. AR) Vehemently argued and first invited our attention in appeal order page no.4. The relevant paragraphs are reproduced as below:- 5. In response to such notice U/s. 142(1) of the Income Tax Act on 20.03.2021, it was categorically stated that during the course of original assessment proceedings, while complying with notice u/s. 142 (1) of the Income Tax Act, 1961, all unimpeachable evidences had been filed before the Assessing officer and all the transactions were supported by proper documentary evidences. During the course of original assessment proceedings, books of accounts and documents were also produced before the AO, thus it is clearly understood that the AO has examined all the issues. This is also evident from the language of the Order U/s. 143 (3) dated 24.02.2015. Hence the allegation of information not available at the time of original assessment has no iota of truth. In this manner, the assessee company had objected on the validity of issuance of notice U/s. 148 after the expiry of 4 years from the end of relevant assessment year on the ground that since the income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment year. So in any case, the addition cannot be sustained. He fully relied on the order of the Hon'ble Gujarat High Court in case of PCIT vs. Ambe Tradecorp (P.) Ltd. [2022] 145 taxmann.com 27 (Guj), held, 3.4 When the revenue preferred appeal before the Appellate Tribunal, the Tribunal confirmed the findings recorded by the Appellate Authority. The Tribunal referred to the decision of Durga Prasad More (82) ITR 540 and also in Sumati Dayal (214) ITR 801, to further record on the basis of the facts that the assessee had furnished the details such as copy of ledger account, bank statements, income tax returns, balance sheet etc. It was also recorded that notice under Section 133(6) of the Act was issued to the said parties which were duly responded by them. The identity of the parties could not be, therefore disputed, recorded the tribunal. The aspect was also noticed that the assessee was not beneficiary of the loan received by it and the loan was repaid by the assessee in the subsequent year. It led to unacceptable conclusion that the impugned transaction was a business transaction between the assessee and the loan parties and that they could not be doubted for their genu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 04,620/- is related to the loan of earlier years and repaid during impugned financial year. For loan related earlier years was never be treated as bogus and respectfully relied on the order of the coordinate bench of ITAT-Kolkata in assessee s own case (supra). He further mentioned that the revenue in ground of appeal wrongly mentioned the interest amount of ₹ 70,50,500/-, instead of interest amount of ₹ 80,50,100/-. He further relied on the order of the co-ordinate Bench of ITAT Kolkata in case of Sandip Kumar Gupta vs. DCIT, Circle-47, Kolkata, ITA No. 1170 to 1173/KOL/2023 date of order 02/07/2024, the bench observed that repayment of loan during financial year is not attracted the addition. 10. In argument the ld. AR confirmed that all relevant documents for complying the Section 68 of the Act was duly filed during assessment proceeding. The ld. CIT(A) in impugned appellate order noted the compliance of the assessee. The relevant paragraphs of the page 58 of the impugned appellate order are reproduced as below: - (v) The AO has accepted the books of accounts and the tax audit report. The AO has also not addressed the issue that the loan transactions with respect six ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... source of any cash credits. The said order is distinguishable in the case of assessee. 12. We respectfully relied on the orders of the Ambe Tradecorp (P.) Ltd (supra) and Sandip Kumar Gupta (supra) which deleted the addition of loan if repaid during the financial year. The same observation is upheld by the order of the Hon ble High Court at Calcutta in the case of the CIT vs. S.C.Ghosal (1977) 106 ITR 980 (Cal). 13. The ld. DR had not rebutted any contrary decisions against the submissions of the ld. AR. We find that the loan amount of ₹ 4.80 crores was duly paid during the impugned assessment year. There is no balance for the assessee related to this loan amount. The assessee is not the beneficial owner of the loan during the impugned assessment year. The assessee filed evidence during assessment proceeding which is acknowledged by the ld. CIT(A) in the impugned appellate order. So, the contravention of Section 68 related identity, creditworthiness and transaction trough banking channel are ruled out. Related to interest the amount of ₹ 90,40,180/- squarely covered by the order of ITAT, Kolkata Bench in assessee s own case (supra). For rest of the interest was pertaine ..... X X X X Extracts X X X X X X X X Extracts X X X X
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