IN THE INCOME TAX APPELLATE TRIBUNAL DELHI “B” BENCH: NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER &

SHRI MANISH AGARWAL, ACCOUNTANT MEMBER [Assessment Year : 2018-19]

DCIT vs Bright Buildtech Pvt.Ltd.

Central Circle-1 Flat No.14, Ground Floor A.R.T.O Complex DDA MIG, Suraj Sector-33, Noida Apartment, Pul Pehlad Pur New Delhi-110044 PAN-AACCB7981J APPELLANT RESPONDENT Revenue by Shri Rajesh Chandra, CIT DR Assessee by Shri Rohit Kapoor, Adv. &

Shri Veersain Aggarwal, CA Date of Hearing 14.08.2025 Date of Pronouncement 31.10.2025 ORDER PER MANISH AGARWAL, AM :

The captioned appeal is filed by Revenue against the order dated 20.11.2024 passed by Ld. Commissioner of Income Tax (A)-3, Noida [“Ld.CIT(A)”] in Appeal No.CIT (Appeal), NFAC/2017- 18/10088227 u/s 250 of the Income Tax Act, 1961 [“the Act”] arising out of assessment order dated 01.06.2021 passed u/s 143(3) r.w.s 144B of the Act pertaining to assessment year 2018-19.

2. Brief facts of the case are that the assessee company is engaged in the business of a real estate developer primarily covering residential projects, identification and acquisition of land, to the planning, execution and marketing of the projects. It had filed its return of income on 30.102.2018, declaring total income of INR NIL. Thereafter, notice u/s 143(2) of the Act was issued on 23.09.2019 and served through e-filing account of the assessee on the registered e-mail id of the assessee. The case of the assessee company was selected for complete scrutiny on various issues which are, (i) claim of any other amount allowable as deduction in Schedule BP; (ii) stock valuation; (iii) investments/advances/loans; (iv) business loss; and (v) unsecured loans. Subsequently, notices u/s 142(1) were issued from time to time, in reply the assessee had filed its replies. After verification of the submissions made by assessee, the assessment order was passed u/s 143(3) r.w.s. 144B of the Act vide order dated 01.06.2021wherein the total income of the assessee was assessed at INR 12,17,08,119/-.

3. Against the said order, assessee filed an appeal before Ld. CIT(A) who vide order dated 20.11.2024, partly allowed the appeal of the assessee.

4. Aggrieved by the order of Ld.CIT(A), Revenue is in appeal before the Tribunal by taking following grounds of appeal:-

1. “Whether on facts and circumstance of the case and in law, Ld. CIT (A)-3, Noida has erred in deleting the addition of Rs.22,37,89,198/

made on account of disallowances of interest u/s 36(1)(iii) of the Income Tax Act, 1961, without appreciating the facts brought on record by the Assessing Officer during the course of assessment proceedings.

2. Whether on facts and circumstance of the case and in law, Ld.CIT (A)-3, Noida has erred in deleting the addition of Rs. 22,37,89,198/-, disregarding the facts that the assessee has advanced huge interest free loan to the sister concerns/private parties/individuals and despite being given proper opportunity during the course of assessment proceedings failed to prove that the said loans were given out of interest free funds. The commercial expediency in respect of these loan has also not been proved by the assessee; hence, the AO has rightly disallowed the interest of Rs. 22,37,89,198/ being 12% of interest bearing funds of Rs.

194,70,54,951/-worked out on day to day basis.

3. Whether on facts and circumstance of the case and in law, Ld.CIT (A)-3, Noida has erred in deleting the said addition, without appreciating the facts that the assessee during the course of assessment proceedings as well as appellate stage completely failed to furnish cogent documentary evidences regarding interest bearing and interest free fund available with it, which could establish that the assessee has utilized the interest free fund for advancing the loan.

4. Whether on facts and circumstance of the case and in law, Ld. CIT (A)-3, Noida has erred in deleting the addition by not considering the facts that the assessee failed to establish that there was di