2012 (7) TMI 1106 - AT - Income Tax

Summary

Issues involved: Four appeals filed by the assessee against separate orders of CIT(A) for assessment years 2001-02, 2002-03, 2003-04, and 2004-05.

Addition on account of share capital and unexplained loans:
The main additions in this case pertain to share capital and loans received by the assessee. The assessee argued that the share capital and loans were received from its holding company through proper banking channels, supported by audited balance sheets, tax residency certificate, and incorporation particulars. It was contended that no addition under section 68 of the Act was justified as the onus had been discharged during the assessment proceedings. The assessee also highlighted that the same amount was taxed substantively in another individual's hands, emphasizing that the nature of the amount and the explanation remained consistent. The Tribunal acknowledged the similarity in facts and circumstances with another case and set aside the issues for fresh consideration by the Assessing Officer.

Disallowances on ad hoc basis:
The assessee contended that disallowances were made on an ad hoc basis without proper consideration of the explanations provided and previous ITAT judgments. Given the Tribunal's decision to remand the main issues for fresh assessment, it was deemed appropriate to also send the remaining grounds back to the Assessing Officer for reconsideration in light of the assessee's explanations and the ITAT order.

Conclusion:
The Tribunal allowed all the appeals filed by the assessee for statistical purposes, directing a fresh assessment by the Assessing Officer on the main issues of share capital and loans, as well as a reevaluation of the remaining grounds considering the explanations provided by the assessee and previous judicial decisions.