9911796707
|
Home
Issues involved: Appeal against addition of unexplained cash credit u/s.68 of the Income Tax Act, 1961 for AY 2007-08.
Summary: The appeal was filed by the assessee against the order of the Commissioner of Income-tax (appeals) confirming the addition of Rs. 29,00,000 made by the Assessing Officer on account of unexplained cash credit. The Assessing Officer found that the assessee had received loans in cash from different persons, including relatives and staff, throughout the assessment year. Despite providing names and addresses of the creditors, the assessee failed to furnish complete details and documents to substantiate the creditworthiness of the creditors. The Assessing Officer, therefore, added the amount to the total income u/s.68 of the Income Tax Act, 1961, a decision upheld by the CIT(A). The assessee contended that all transactions were recorded in the books of account, and the loan liability was shown in the balance sheet. The loans were received from friends, relatives, and staff for business purposes during a financial crunch. The assessee provided supporting materials and documentary evidence, but the authorities did not thoroughly examine the evidence. The DR supported the addition, stating that the assessee failed to prove the conditions under Section 68. Upon hearing the contentions and examining the records, the Tribunal found that the CIT(A) confirmed the addition without properly considering the details and evidence submitted by the assessee. The Tribunal noted that the assessee had provided a Paper Book containing loan ledger accounts, loan confirmations, and repayment details. In the interest of justice, the Tribunal set aside the CIT(A)'s order and remanded the issue back to the Assessing Officer for a fresh consideration based on the evidence provided by the assessee. The Tribunal directed the Assessing Officer to decide the issue in accordance with the law, ensuring natural justice is followed. As a result, the appeal of the assessee was allowed for statistical purposes.
|
