2011 (4) TMI 1498 - AT - Income Tax

Summary

Issues involved:
Appeal against deletion of unexplained credits and interest addition u/s 68 for AY 2006-07.
Addition of TDS amount leading to double addition for AY 2007-08.

For AY 2006-07:
The Revenue appealed against the deletion of unexplained credits and consequential interest addition u/s 68. The Assessing Officer found unsecured loans taken by the assessee company as unexplained credits. The Commissioner of Income-tax (Appeals) deleted the additions based on confirmation letters and details provided by the assessee. The Revenue contended that the burden of proof regarding creditworthiness was not adequately discharged by the assessee. The Tribunal held that the assessee failed to establish the genuineness of the credits, leading to restoration of the additions made by the Assessing Authority.

For AY 2007-08:
The issue revolved around the addition of a TDS amount leading to double addition in the total income of the assessee. The assessee filed a rectification petition under sec.154, which was initially dismissed by the Assessing Officer. The Commissioner of Income-tax (Appeals) found the addition to be a rectifiable mistake and deleted the same. The Tribunal upheld the decision, stating that the addition resulted in duplication and was a clear arithmetic error. Consequently, the Revenue's appeal for AY 2007-08 was dismissed.