Corporate Compliance 5 September 2026
ROC Filing Gaps Don't Void Unsecured Loans, Court Rules
Delhi’s Income Tax Appellate Tribunal dismissed a Section 68 addition on a loan that lacked ROC filings, ruling that the absence of ROC documentation does not invalidate a genuine unsecured loan. The decision clarifies that tax authorities must focus on the loan’s substance rather than formal ROC compliance when assessing tax liability.
Court ruling: The Delhi ITAT quashed the Section 68 addition, stating that missing ROC filings do not render an unsecured loan invalid.
- The tribunal emphasized substance over form, focusing on the loan agreement and repayment evidence.
- Tax assessments must consider genuine loan characteristics, not just statutory filing status.
For full details, see the TaxCorp AI article.
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