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Judgment
PER VIKAS AWASTHY, JM:
This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)’] dated 22.09.2025, for Assessment Year 2023-24.
Shri Anil Jain, appearing on behalf of the assessee submits that the solitary issue raised by the assessee in appeal is with regard to addition of Rs.6,50,000/- sustained by the CIT(A) in respect of unsecured loans taken by the assessee from Ms. Juhi Kuchhal. The Id. Counsel for the assessee submits that the assessee had taken unsecured loan of Rs.11,00,000/- from Ms. Juhi Kuchhal during the period relevant to assessment year 2023-24. The assessee in order to discharge its onus in proving creditworthiness of the lender, furnished Income Tax Return for AY 2021-22, 2022-23 and 2023-24 of Ms. Juhi Kuchhal, Bank statement, PAN, Aadhar, etc. of Ms. Juhi Kuchhal. The Assessing Officer (AO) without appreciating documents furnished by the assessee made addition of Rs.11,00,000/- as unexplained cash credit u/s.68 of the Income Tax Act,1961 (hereinafter referred to as ‘the Act’). The assessee carried the issue in appeal before the CIT(A). The CIT(A) deleted the addition to the extent of Rs.4,49,000/- and confirmed the balance amount of Rs.6,51,000/-. Hence, the present appeal.
The ld. Counsel submits that Ms. Juhi Kuchhal had advanced the loan from cash in hand available from her business. Further, the source of funds available with Ms. Juhi Kuchhal for advancing loans includes Rs.1,51,000/- received by her from her mother-in-law Smt. Kanak Kuchhal. Confirmation from Smt. Kanak Kuchhal is at page 29 of the paper book. The AO and the CIT(A) has disbelieved the gift received by Ms. Juhi Kuchhal from Smt. Kanak Kuchhal. The ld. Counsel thus prayed for deleting the remaining addition.
Per contra, Shri Keshav Kishore Anand representing the department vehemently defending the impugned order prayed for dismissing appeal of the assessee. He submitted that the assessee was not able to substantiate creditworthiness of the lender Ms. Juhi Kuchhal. Hence, the AO made addition of Rs.11,00,000/-. The CIT(A) after examining the documents placed on record by the assessee restricted the addition to Rs.6,51,000/-. He stated that the order of CIT(A) is fair and reasonable, hence, the same should be upheld.
Both sides heard, orders of the authorities below examined. The assessee has taken unsecured loan of Rs.11,00,000/- from Ms. Juhi Kuchhal. The AO questioned creditworthiness of Ms. Juhi Kuchhal, the source of funds available with Ms. Juhi Kuchhal was explained here in under:-
Cash in hand Rs.6,50,000/-;
Amount transferred from another bank account of Ms. Juhi Kuchhal Rs.2,50,000/-;
Funds received from her husband Rs.2,49,500/-;
Amount received from Father-in-law Rs.2,00,000/-; &
Cash gift received from Mother-in-law Rs.1,51,000/-.
The CIT(A) accepted funds to the extent of Rs.4,49,000/- i.e. amount received by Ms. Juhi Kuchhal from her husband and father-in-law. Thus, addition to the extent of Rs.4,49,000/- was deleted. In order to substantiate gift from mother-in-law Mrs. Kanak Kuchhal, the assessee has placed on record confirmation from her mother-in-law at page 29 & 30 of the paper book. Considering confirmation received from mother-in-law of the assessee, further addition of Rs.1,51,000/- is directed to be deleted. In so far as remaining amount of Rs.5,00,000/- is concerned, an amount of Rs.2,50,000/- is estimated as cash in hand. Thus, amount of Rs.2,50,000/- is directed to be deleted and the balance amount of Rs.2,50,000/- is sustained.
In the result, appeal of the assessee is partly allowed in the terms aforesaid.