JCIT (OSD) in charge of DCIT, Circle-1(3)(1), Mumbai Vs. Geopreneur Realty Private Limited

Parties Involved

Facts Summary

The assessee, Geopreneur Realty Private Limited, filed its return of income on 01.03.2019 reporting a total loss at Rs.59,20,072/-. The assessee is engaged in the business of real estate development and construction. The case involves two loans: one taken from its holding company, Geopreneur Corp Private Ltd. (GCPL), and another from a partnership firm, M/s MK Rai. The holding company had repaid the loans taken by the assessee from two Non-banking Finance Companies (NBFCs) and replaced them with a loan in its own name. The assessee provided extensive documentary evidence to substantiate these transactions. Additionally, the assessee had an outstanding loan from a partnership firm in which it was a partner, which was reclassified into the partner’s current account.…

Legal Issues

• 1. Whether the Ld. CIT(A) erred in deleting the addition u/s 68 of the Act amounting to Rs.15,85,09,315/- with respect to the loan taken from its holding company, without appreciating the fact that the assessee failed to prove creditworthiness and genuineness.
• 2. Whether the Ld. CIT(A) erred in deleting the addition u/s 68 of Rs. 10 Lacs with respect to the loan taken from the partnership firm, i.e., M/s MK Rai, without appreciating the fact that the appellant failed to prove creditworthiness and genuineness.

Judgment Outcome

Decided in favour of Assessee.

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