The Commissioner of Income Tax (Appeals) confirmed additions ...

Unsecured loans & capital intro during demonetization questioned. AO failed inquiries. Assessee claimed jewelry sales, past savings. Creditworthiness proved. Cash deposits not loans.

Case Laws     Income Tax

July 5, 2024

The Commissioner of Income Tax (Appeals) confirmed additions from unsecured loans and capital introduced by the assessee during demonetization. The Assessing Officer failed to make inquiries regarding the same, rendering the addition unsustainable. The assessee claimed consideration from jewelry sales, declared as taxable capital gains, and past savings for capital introduced in the proprietary concern. The creditworthiness was proved, and cash deposits from business receipts cannot be concluded as loans. The Commissioner of Income Tax (Appeals) deleted an amount regarding a cheque transaction after examining purchase bills, confirmations, and Income Tax Returns. The assessee provided cash books, sales and purchase books, expense ledgers, loan confirmations, and stock registers. The Income Tax Appellate Tribunal allowed the assessee's appeal and dismissed the revenue's appeal.

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