Sonthalia Capital Pvt. Ltd. Vs DCIT, Circle-7(2), Kolkata
Parties Involved
Facts Summary
The assessee company, Sonthalia Capital Pvt. Ltd., filed its original return of income for the assessment year 2017-18 declaring a total income of Rs. 10,14,610/-. Notices under section 143(2) and 142(1) of the Act were issued and complied with. Subsequently, an assessment order under section 143(3) was passed on 24.12.2019 determining the total income at Rs. 59,14,610/-. The Assessing Officer made additions under section 68 of the Act amounting to Rs. 25,00,000/- and Rs. 24,00,000/- with respect to loans received from Linkwise Dealtrade Private Limited (LDPL) and Ambala Trafin Private Limited (ATPL), respectively. Aggrieved by this order, the assessee appealed to the ld.CIT(A), whose order was dismissed. The assessee then appealed to the Tribunal. The assessee argued that the additions were erroneous as they had provided documentary evidence of unsecured loans taken from LDPL and ATPL, which were repaid in the subsequent year. The assessee also provided various documents to substantiate their claims.…
Decision in favour of
Assessee
Legal Issues
- 1. Whether the additions made by the Assessing Officer under section 68 of the Act were justified.
Judgment Outcome
Decided in favour of Assessee.
Precedents Relied Upon
4 precedents cited in this judgement.
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