Assessee’s appeal dismissed as Orissa High Court upholds addition of unsecured loan

Unideep Food Processing (P.) Ltd. v. Income-tax Appellate Tribunal

Case Number: IT APPEAL NO. 50 OF 2020

Date of Judgement: 14/02/2023

Facts: The appeal concerns the addition of Rs. 45,29,020/- to the taxable income under the head ‘unsecured loan’ under section 68 of the Income-tax Act, 1961. The ITAT remanded the matter to the AO with specific directions to verify the genuineness of the transaction. The Assessee did not produce the farmers from whom the unsecured loan was borrowed, and failed to provide confirmation of loan repayment.

Decision: The Appellant’s argument that the AO should have issued summons to the farmers is not persuasive, as the Assessee did not ask for summons or produce fresh affidavits confirming loan repayment. Cited cases, such as CIT v. Bharat Engineering & Construction Co., India Rice Mills v. CIT, and CIT v. Kewal Krishan, do not help the Appellant as they are distinguishable on facts. The Court found no substantial question of law arising from the ITAT order and dismissed the appeal.