2013 (3) TMI 751 - AT - Income Tax

Summary

Issues Involved:
The department appealed against the CIT(A)'s order deleting an addition of Rs. 28,32,675 made during assessment year 2008-09.

Details of the Judgment:

Issue 1: Addition of Rs. 28,32,675
- The AO observed that the assessee, deriving income from salary and trading in cloth, had taken a loan of Rs. 28.32 lakhs from Shri Pravin Hirji Thakkar for a land purchase.
- The AO found discrepancies in Shri Pravin Hirji Thakkar's income tax return filings, leading to doubts about the loan source.
- The CIT(A) deleted the addition, stating that all details proving the loan's genuineness were filed and not found false.
- The department appealed, arguing that the AO's decision was justified.
- The Tribunal found that Shri Pravin Hirji Thakkar's income was assessed, tax paid, and the loan given to the assessee through proper channels.
- The Tribunal concluded that the onus to prove the loan's genuineness was discharged by the assessee.
- The Tribunal upheld the CIT(A)'s decision to delete the addition, dismissing the department's appeal.

This judgment highlights the importance of proving the genuineness of transactions and the burden of proof on the assessee in tax matters.