GRGrovy India539522Tax or GST

ITAT partly allows appeal, deletes ₹1 crore section 68 addition; demand was ₹119.24 lakh

ITAT, Delhi Bench "B" has partly allowed the company's appeal for Assessment Year 2020-21.

By ScoutQuest · Tue 27 Oct 2026, 1:37 PM IST · 2 min read

Addition Deleted

₹1 crore under section 68 on unsecured loan from M/s Nandini Tradpex Pvt. Ltd.

Tax Demand

₹119.24 lakh as per the assessment order

Order Details

ITAT, Delhi Bench "B", order dated 9 October 2026, received 26 October 2026, AY 2020-21

What the order says

• The Income Tax Appellate Tribunal, Delhi Bench "B", passed an order dated 9 October 2026 in ITA No. 2052/DEL/2026 for Assessment Year 2020-21.
• The Tribunal partly allowed the company's appeal.
• The addition of ₹1 crore made under section 68 of the Income Tax Act, 1961, in respect of a loan received from M/s Nandini Tradpex Pvt. Ltd., was deleted.
• The company received the order on 26 October 2026.

What the dispute was

• The appeal was against an order of the Commissioner of Income Tax (Appeals)-26, Delhi dated 13 January 2026, which arose from an assessment order dated 20 February 2025 under section 147.
• The Assessing Officer had alleged that the unsecured loan of ₹1 crore was an accommodation entry and treated it as unexplained cash credit under section 68.
• The Tribunal held that the company had discharged its onus on identity, creditworthiness and genuineness, and that section 68 is not applicable.
• The update states that no violation or contravention has been held against the company.

Points kept open

• Grounds 1 to 4, 11 and 12, relating to jurisdiction under section 148, initiation of penalty under section 271AAC(1) and interest under sections 234B, 234C and 234D, have been treated as academic and kept open.

Money involved

• Addition deleted: ₹1 crore, originally charged at the rate under section 115BBE.
• Demand as per the assessment order: ₹119.24 lakh.
• The company states that the deletion is expected to reduce the tax demand raised, and that there is no impact on its operations.

How to read this

The order removes a ₹1 crore addition from the company's assessment for Assessment Year 2020-21, and the company expects the related tax demand of ₹119.24 lakh to come down. Because some grounds were kept open rather than decided, those points remain subject to further proceedings.

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