2011 (4) TMI 1544 - AT - Income Tax

Summary

Issues involved: Appeal against order dated 09/07/2009 of CIT(A)-Siliguri for A.Yr. 2003-04.

Grounds of Appeal:
1. Addition of Rs.3,65,110/- u/s 68 for unsecured loan.
2. Disallowance of Rs.65,720/- interest on unsecured loan.
3. Addition of Rs.3,50,000/- alleged gift received.
4. Disallowance of Rs.1,748/- sales tax payment u/s 43B.
5. General ground not pressed and dismissed.

Loan and Interest Disallowance:
- Assessee took loans, paid interest, and cleared them.
- AO added Rs.3,65,110/- u/s 68, disallowed interest.
- Assessee submitted confirmations and affidavits.
- AO disregarded submissions, added amount u/s 68.
- Tribunal found loan creditors showed transactions in books, offered interest income, hence deleted additions u/s 68 and interest disallowance.

Alleged Gift Received:
- Gifts received from three individuals questioned.
- Enquiries made on donors' financial status and credibility.
- Inspector's report raised doubts on donors' capacity to gift.
- CIT(A) confirmed additions based on Inspector's report.
- Assessee contended gifts were genuine, provided documents.
- Tribunal upheld Revenue's doubts on gifts' genuineness.
- Tribunal dismissed appeal on gift additions.

Conclusion:
- Tribunal allowed appeal in part.
- Deleted additions u/s 68 and interest disallowance.
- Confirmed Revenue's action on gift additions.
- Appeal result pronounced on 05.04.2011.