Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2024 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (6) TMI 860 - AT - Income TaxIssues involved: Appeal against order dated 05-07-2023 passed by National Faceless Appeal Centre (NFAC), Delhi for assessment year 2016-17. Issue 1: Reopening of the case u/s. 147 - The Assessing Officer initiated proceedings without specifying the name of the person who paid Rs. 30,00,000 to the appellant. - The CIT(A) upheld the addition of unsecured loan u/s. 68 despite furnished confirmation, ITR, and bank statement of the lender. - The appellant argued that the reopening based on vague information from searches on different groups was not valid. - The A.R. relied on legal precedents to challenge the reopening and the addition of unsecured loan. Issue 2: Addition of unsecured loan u/s. 68 - The Assessing Officer added Rs. 30,00,000 as unexplained cash credit u/s. 68 despite the appellant providing documentation to establish the genuineness of the loan. - The CIT(A) partly allowed the appeal of the assessee regarding this addition. - The appellant contended that the lender's financial position was sound and the investment made from the loan was legitimate. - Legal arguments were presented citing relevant court decisions to support the appellant's case. Judgment Summary: - The assessee's return for the assessment year 2016-17 was scrutinized following searches on various groups. - The Assessing Officer made an addition of Rs. 30,00,000 as unexplained cash credit u/s. 68, which the CIT(A) partly upheld. - The appellant challenged the reopening of the case u/s. 147 and the addition of the unsecured loan, providing substantial evidence to support the legitimacy of the transactions. - After hearing both parties, the Tribunal dismissed the appeal regarding the reopening of the case but allowed the appeal against the addition of the unsecured loan u/s. 68. - The Tribunal found that the appellant had adequately demonstrated the source and utilization of the loan, rendering the Assessing Officer's doubts unfounded. - The confirmation of the bank statement and the investment details supported the appellant's explanation, leading to the allowance of the appeal on the second ground. - The Tribunal pronounced the order on 12-01-2024, partly allowing the appeal of the assessee.
|