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Judgment
This assessee’s appeal for assessment year 2019-20 arises against the Commissioner of Income Tax (Appeals)-29 [in short, the “CIT(A)”], New Delhi’s order dated 05.12.2025 passed in case no CIT(A), Delhi-29 10929/2018-19, involving proceedings under section 147 r.w.s. 144 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Heard both the parties. Case file perused.
It is evident at the outset during the course of hearing that both the learned lower authorities have held the assessee to have availed an unsecured loan entry from M/s. R.P. Securities and Services Ltd., forming subject matter of addition under Section 69A of the Act; in assessment order 29.03.2024 as upheld in the lower appellate discussion.
That being the case, learned departmental representative vehemently argues that the Revenue has rightly made the impugned addition in the assessee’s hands as it has been found as a beneficiary of bogus accommodation entries operated by M/s. Himanshu Verma group. A perusal of the case file indicates that the assessee had in fact advanced the very sum of Rs.35 lakhs to M/s. Arti Securities and Services Ltd. on 15.03.2018 (page 45) which form opening balance as on 01.04.2008 followed by repayment thereof on 4th & 6th April, 2018 regarding the very sum. It is therefore crystal clear that what all the assessee has received is repayment of the loans advanced than any accommodation entries which could be held as unexplained u/s 69C. The impugned addition stands deleted for this precise reason.
Same reasoning follows for the unexplained commission expenditure payment as well.
This assessee’s appeal is allowed.