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2008 (2) TMI 340 - HC - Income TaxITAT uphold the order of the CIT (A) and deleted the addition made by the Assessing Officer, on account of unexplained loans - ITAT has affirmed the order of CIT (A) while observing that the creditors were produced and their statements were recorded and in their statements, the creditors have confirmed having advanced loan to the assessee - held that in view of this material, the Assessing Officer was not justified in making addition no substantial question of law arise
Issues:
1. Addition of unexplained cash credits 2. Addition of unexplained investment in purchase of a bus 3. Addition of unexplained loans contrary to Rule 46A 4. Perversity of ITAT's order 5. Legality of ITAT's order without recorded reasons Analysis: Issue 1: Addition of unexplained cash credits The ITAT affirmed the CIT (A) order, noting that the creditors were produced, and their statements confirmed advancing loans to the assessee. The Assessing Officer's addition of Rs. 1,53,500 on unexplained cash credits was deemed unjustified based on this evidence. Issue 2: Addition of unexplained investment in purchase of a bus The Assessing Officer estimated the vehicle's value at Rs. 11 lakh, higher than the Rs. 10 lakh offered by the assessee, without a valid basis. The CIT (A) rightly deleted the Rs. 1 lakh addition, as there was no justification for the higher valuation. Issue 3: Addition of unexplained loans contrary to Rule 46A The assessee presented adequate documents during appellate proceedings proving that loans from M/s Tata Finance Co. and M/s Super Travels were genuine. The ITAT found no reason to add Rs. 3,87,696 as unexplained loans, as the evidence provided was satisfactory. Issue 4: Perversity of ITAT's order The court opined that no substantial question of law arose, as the ITAT upheld the CIT (A) findings based on available material. Consequently, there was no basis for intervention in the appeal. Issue 5: Legality of ITAT's order without recorded reasons The court dismissed the appeal, finding no grounds to interfere as the ITAT had considered the available record and affirmed the CIT (A) findings. No substantial legal question emerged from the case, leading to the appeal's dismissal.
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