The Pr. Commissioner of Income Tax-1 & Anr. v. M/s NBC Agri International Pvt. Ltd.

1. FACTS OF THE CASE

Revenue challenged the Tribunal’s 28 March 2025 order in ITA 128/Agr/2024 for AY 2017–18, which had dismissed its appeal from CIT(A)’s 3 January 2024 order. CIT(A) found creditor identity, transaction genuineness and creditworthiness established.

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2. DISCUSSION BY THE COURT

The Tribunal noted the Interim Board of Settlement’s acceptance of the creditor’s identity and existence, traced the source of the loan through funds received by the creditor from third parties, and recorded banking-channel movements. The High Court treated these as findings on due appraisal of evidence that raised no substantial question of law.

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3. JUDICIAL DECISION

Revenue’s appeal was dismissed without costs, as concluded by the factual findings.

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4. OUTCOME

The assessee retained the appellate relief; no substantial question of law arose on the evidence described.

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5. Expert Comments

AKHB editorial analysis, distinct from the Court’s findings.

Banking movement was part of a wider evidentiary record

The judgment also records identity, genuineness, creditworthiness and tracing of the creditor’s receipts. It should not be reduced to a rule that a bank transfer alone proves a loan.

Source: PDF p. 2

The threshold under section 260A mattered

The Court declined to reopen findings reached on due appraisal of evidence. It did not create a blanket prohibition on challenging factual findings regardless of perversity or legal error.

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The settlement reference is specific

The Interim Board’s acceptance of this creditor’s identity formed part of the reasoning. The order does not state that every settlement finding binds all taxpayers or eliminates the need to establish the transaction.

Source: PDF p. 2