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TMI Blog2021 (1) TMI 665X X X X Extracts X X X X X X X X Extracts X X X X ..... an as a gift to his wife, cannot be the reason for drawing a similar conclusion for unrelated parties that the other persons will also convert their loan to gift, especially when in the books of account amount has been reflected as loan. Assessee has brought on record that, these loans has been repaid back in the subsequent year, and therefore, amount which has been treated as loan in the books of account and has also been repaid back as a loan, same cannot be treated as a gift. We do not find any reason to interfere in the order of the ld. CIT (A), and therefore, the appeal of the Revenue is dismissed. - I.T.A. No.2743/DEL/2017 (Assessment Year 2008-09) - - - Dated:- 29-10-2020 - SHRI AMIT SHUKLA, JUDICIAL MEMBER AND SHRI PRASHANT M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the issue raised in the grounds are that the assessee is an individual. A search and seizure action was carried out u/s.132(1) on 19.10.2011 at the premises of Agarwal Associates and Jainco Group of cases. During the course of search certain material was found and seized which related to the assessee and accordingly, the proceedings u/s.153C read with Section 153A were initiated. 3. Ld. Assessing Officer on perusal of the documents noted that assessee has taken unsecured loan from the following persons which was outstanding on 31st March, 2008:- S.No. Name Amount outstanding as on 31.03.2008 in Rs. 1. Deepa Jain 3,00,00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reason for drawing a conclusion that other person will also convert their loan to a gift, especially when the books reflect the same as a loan. The same cannot be treated as a gift to bring it within purview of Section 56(2)(vii) of the Act and section 56(vii) deals with receipt of money without any obligation to repay. A loan cannot be treated as a sum of money received without consideration because the assessee was only a custodian of money with an obligation to repay the same on demand as has been held in the following case law. ACIT vs. Saranpal Singh, HUF in ITA 692/Chd/2009 Chandrakant H. Shah vs. Income Tax Officer, 124 ITD 177/121 TTJ 145 JCIT vs. Virat Dhingra, ITA No. 1141/DHD/2011, order dated 01/05/2012 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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