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TMI Blog2019 (12) TMI 921X X X X Extracts X X X X X X X X Extracts X X X X ..... ce sheets of all those persons and the Tribunal in these circumstances firstly held that the Commissioner erred in holding that the bank statement and the income tax returns had not been filed before the Assessing Officer and secondly the Tribunal noticed and further held no infirmity has been pointed out by the Ld. Pr. CIT in the same in his entire order which would show that the creditworthiness of the loanees was doubtful and the AO having not taken cognizance of the same had committed an error causing prejudice to the Revenue. We fail to understand the relevance of the balance sheet of the loanees for establishing their creditworthiness when all other relevant documents for the same, i.e. return of income of the loanees and copy of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g Officer should have called a record of the computation of income/balance sheet along with the returns of income to prove their creditworthiness of the persons in providing the assessee unsecured loans and remitted the matter back for fresh order in accordance with law. 3. Aggrieved against the order of the CIT, the assessee challenged the same before the Tribunal and the Tribunal found as a fact that the documents relating to the persons who had granted the loans had not only been submitted before the Assessing Officer but had also been produced before the Commissioner and at no stage was it pointed out that from a perusal of those documents, a case was made out for further requiring the assessee to obtain the balance sheets of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Worthy Pr. CIT u/s 263(1) of the I.T. Act, 1961 on account of non-proper verification of unsecured loans made by the A.O. with regard to the loans raised by the assessee during the year under consideration from various loanees/ persons, whose creditworthiness to give these huge loans were not justified according to their low income and further source of income shown in their returns of income other documents placed on record. The Hon'ble Delhi High Court in ITA No.55/2017 dated 25.08.2017 in the case of Worthy Pr. CIT VS. Bikram Singh has confirmed additions made on account of unsecured loans of ₹ 2,68,00,000/- on account of non-proving the transaction were genuine and the creditworthiness of the loanee persons were not just ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee to justify the claim in terms of the double taxation avoidance agreements. In a situation of this nature, we are also of the opinion that it was not a case which warranted interference by the tribunal, more so far setting aside the order of the commissioner and for ensuring that the order passed by the assessing authority was left in tact. 24. One should bear in mind that a relief which is required to be given to any litigant in any given case should be commensurate to the gravity of the situation, to the needs and necessity of the situation and warranting such relief and with reference to the governing statutory provisions. Just because the tribunal has appellate jurisdiction over the orders passed by the commissioner, it do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he finding is to be against the assessee or any claim put forth by the assessee is denied. 27. We are of the clear opinion that there cannot be any dichotomy of this nature, as every conclusion and finding by the assessing authority should be supported by reasons, however brief it may be, and in a situation where it is only a question of computation in accordance with relevant articles of a double taxation avoidance agreements and that should be clearly indicated in the order of the assessing authority, whether or not the assessee had given particulars or details of it. It is the duty of the assessing authority to do that and if the assessing authority had failed in that, more so in extending a tax relief to the assessee, the or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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