Assessee obtained loans from two corporate entities to purchase ...

Unexplained loans scrutinized: AO's one-sided stance overturned; Assessee prevails with evidence.

Case Laws Income Tax

October 15, 2024

Assessee obtained loans from two corporate entities to purchase properties. AO treated these loans as unexplained cash credits u/s 68, relying solely on third-party statements without conducting independent inquiries or allowing cross-examination, violating natural justice principles. Assessee furnished evidence establishing lenders' identities, transaction genuineness, and creditworthiness during appellate proceedings. CIT(A) examined additional evidence due to AO's failure to complete remand proceedings. Onus u/s 68 was discharged by assessee, and AO failed to rebut the evidence. ITAT upheld CIT(A)'s order deleting the addition, citing violation of natural justice by AO and assessee's discharge of onus as per judicial precedents.

View Source

← Previous Next →

Assessee obtained loans from two corporate entities to purchase ...

Unexplained loans scrutinized: AO's one-sided stance overturned; Assessee prevails with evidence.

Case Laws Income Tax

October 15, 2024

You may also like:

Unsecured loans treated as unexplained cash credits u/s 68. Interest paid on such unexplained loans also added to income. Assessee's contention of repayment of loans...

Unexplained cash credit - In fact, the loans are taken from close family members and friends. It is not a case of the AO that the assessee had taken loans from certain...

Unexplained Unsecured Loans - Additions made by the ld.AO in the case of assessee are against the principles laid down u/s.68 - no addition could have been made by the...

Unexplained cash credits u/s 68 - There is no justification in treating the loans raised by the assessee from the said companies as unexplained cash credits u/s 68 -...

The assessee borrowed loans from financial institutions at an interest rate of 12.75% and advanced loans to group companies or relatives at 12% interest rate. The...

The case pertains to the revision of an assessment order u/s 263 regarding the applicability of the higher tax rate u/s 115BBE on unexplained expenditure u/s 69C. The...

Unexplained unsecured loans - the assessee in reply had submitted that the contract can be either verbal or written and simply non availability of a written contract...

Assessment of notional interest on loans - loan has been granted by the assessee to its sister concern - As per the provisions of Sec. 36(1)(iii) AO could have...

TP Adjustment - Benchmarking of interest receivable on loan - when the assessee has charged higher interest on loan to subsidiary compared to the prevailing interest...

Addition u/s 68 - Cash loan and interest income earned on such cash loan unexplained - It is not understandable as how the cash loan are unexplained, when the AO has not...

Unexplained investment - The basis of addition made in the present case is the source of investment remaining unexplained. Now, the assessee having explained the source...

AO failed to conduct proper inquiries regarding genuineness of loan transactions for property acquisition. Bank statements revealed assessee lacked funds, payments made...

Compounding of offences - KVAT Act - For compounding an offence, which of the compounding fees should be paid by the assessee: the one prevailing when the evasion took...

Unexplained money u/s 69A - Unexplained loan - the loan creditors had deposited cash in their accounts and mostly on the very same day they had transferred the same to...

Disallowance on interest u/s. 36(1)(iii) - AO has compared the payment of interest @ 12%/15% on the unsecured loan obtained by the assessee with the interest amount...

Quick Updates: