2012 (9) TMI 1189 - AT - Income Tax

Summary

Issues involved: Assessment of unsecured loans and interest payments u/s 68 of the Income Tax Act, 1961 for A.Yr. 2007-08.

Summary:
The Appellate Tribunal ITAT Kolkata heard an appeal filed by the assessee against the order of the ld. CIT-(A)-XXX, Kolkata regarding the addition of unsecured loans and interest payments. The AO had added amounts under 'unexplained loan creditors' and 'interest paid on the above loan creditors' due to lack of confirmation and details provided by the assessee. The ld. CIT(A) deleted a significant portion of the additions but confirmed a specific amount of unsecured loans and interest. The Tribunal considered the documents submitted by the assessee, including IT returns, balance sheets, bank statements, and affidavits, to support the transactions entered through banking channels. Both parties agreed to set aside the issue for further verification by the AO to allow the assessee another opportunity to substantiate its claim.

In conclusion, the appeal of the assessee was allowed for statistical purposes, and the matter was remanded to the file of the AO for additional verification.