2012 (8) TMI 1177 - AT - Income Tax

Summary

Issues involved: Appeal against addition of loan amount u/s 68 of the IT Act, 1961.

Summary:
The appeal was directed against the order of the ld. CIT (A)-IV, Rajkot for the assessment year 2006-07. The only grievance of the assessee was regarding the confirmation of addition of Rs. 4.80 Lakhs on account of a loan taken from 25 depositors. The AO had held the loan as non-genuine and added it to the total income of the appellant u/s 68 of the IT Act, 1961. The appellant produced Xerox copies of identity proofs for some creditors but failed to produce them for verification. The CIT(A) upheld the AO's decision. The ITAT set aside the CIT(A)'s order and directed the AO to provide the assessee with one more opportunity to produce the loan creditors and documentary evidence of loan repayment. The AO was instructed to pass a fresh decision after considering all evidence presented by the assessee.

In conclusion, the assessee's appeal was allowed for statistical purposes, and the matter was remanded back to the AO for fresh consideration with specific instructions to provide a reasonable opportunity for the assessee to present necessary evidence.