Beekay Vanijya Pvt. Ltd. vs. DCIT, Circle -7(1), Kolkata

Parties Involved

Facts Summary

The assessee, Beekay Vanijya Pvt. Ltd., filed a return of income for the assessment year 2014-2015 declaring an income of Rs.88,37,270/-. However, the Assessing Officer assessed the income to Rs.4,55,31,490/- by making certain additions and disallowances. Specifically, Rs.99,07,825/- was disallowed on account of Operation & Maintenance charges at Bhutan, Rs.2,00,00,000/- was added on account of bogus unsecured loans under section 68 of the IT Act 1961, and Rs.65,86,000/- was disallowed on account of Operation & Maintenance charges (local) paid to M/s S.P. Mining. The assessee appealed before the CIT(A), which allowed the appeal on two counts but confirmed the addition of Rs.1,85,00,000/- under section 68 of the Act. Dissatisfied, the assessee filed this appeal, submitting that it had taken a loan of Rs.2,05,00,000 from various parties, including an unsecured loan of Rs.1,85,00,000 from Kailash Auto Finance Limited, and provided supporting documents to substantiate the loan transaction.…

Legal Issues

• 1. Whether the addition of Rs.1,85,00,000/- under section 68 of the IT Act 1961 for unsecured loans is justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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