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2012 (6) TMI 17 - HC - Income TaxAddition u/s 56(2)(v) with regard to the alleged loans taken by the assessee - addition made on the ground that the assessee could not show that the loans had been repaid and since no interest was paid on the purported loans, the said amounts were to be regarded as payments received without consideration - Held that - Since the material with regard to the repayment of the loan was not before the Tribunal, hence it would be appropriate if the impugned order is set aside and the matter is remitted to the Tribunal to consider the issue afresh.
Issues:
1. Justification of upholding addition under Section 56(2)(v) of the Act. 2. Interpretation of provisions in Section 56(2)(v) regarding loans as income from other sources. Analysis: 1. The appeal pertains to the assessment year 2005-2006 and questions the addition of Rs. 8,28,375 made under Section 56(2)(v) of the Income Tax Act. The Assessing Officer initially added Rs. 27,20,375 as income from other sources, alleging loans taken by the assessee. The appellant claimed to have repaid the loans, but no evidence was submitted during the assessment. The Commissioner of Income Tax (Appeals) accepted most of the plea, reducing the addition to Rs. 80,000. The revenue appealed to the Income Tax Appellate Tribunal, which increased the addition to Rs. 9,48,375. The Tribunal's decision was based on the lack of evidence of loan repayment and the absence of interest payments on the loans. 2. The Tribunal's decision was challenged as the appellant contended that the loans were repaid. The High Court found that the matter required further examination regarding the repayment of loans. The Court set aside the Tribunal's order and remitted the case for fresh consideration. The appellant was granted liberty to provide evidence of loan repayment. The Court directed the Tribunal to reconsider the issue, taking into account all facts and circumstances, after reviewing the evidence of loan repayment submitted by the appellant. The case was remitted to the Tribunal for further proceedings, with the parties instructed to appear before the Tribunal on a specified date.
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