ITAT upheld the PCIT's revisionary order under Section 263, ...

Tribunal Orders Comprehensive Review of Unsecured Loans, Highlighting Inadequate Assessment under Section 263

April 23, 2025

Case Laws Income Tax AT

ITAT upheld the PCIT's revisionary order under Section 263, directing the AO to conduct a comprehensive examination of unsecured loans. The tribunal found the original assessment order deficient, as the AO failed to thoroughly investigate the three critical aspects of cash credits: identity, creditworthiness, and transaction genuineness. Despite the assessee providing confirmation letters, the AO did not perform requisite due diligence by examining financial statements, income tax returns, or verifying the transaction's nature. The tribunal rejected the assessee's contention regarding Section 153D approval, noting the assessment order did not adequately address unsecured loans. Consequently, the appeal was dismissed, mandating a detailed reassessment of the loan transactions.

View Source

← Previous Next →

ITAT upheld the PCIT's revisionary order under Section 263, ...

Tribunal Orders Comprehensive Review of Unsecured Loans, Highlighting Inadequate Assessment under Section 263

April 23, 2025

Case Laws Income Tax AT

You may also like:

Revision u/s 263 by CIT - inadequate v/s no enquiry - unsecured loan, difference in stock and late payment of PF & ESI - The Tribunal reviewed each of the contested...

The Appellate Tribunal held that the Assessing Officer erred in making additions u/s 68 for unsecured loans and disallowing interest component. The assessee demonstrated...

The Appellate Tribunal dismissed the assessee's appeal regarding the revision u/s 263 concerning unsecured loans received. The Principal Commissioner found that the...

Review of Order after gap of 13 years - delay can be condoned or not - There is a period of one year provided as per the Act, 2003 for seeking review of any order passed...

ITAT held that the addition under Section 68 for unsecured loans was inappropriate. The tribunal found the assessee established creditor identity through PAN,...

The ITAT held: Interest expenditure on unsecured loans is allowable deduction u/s 57(iii) as borrowed funds were utilized for advancing loans earning interest income,...

Additions on account of Bogus unsecured loans and bogus share capital money - Revenue argued that the unsecured loan from entities controlled by a hawala operator should...

Addition u/s 68 - Since the assessing officer treated the unsecured loan as unaccounted received consequent interest was also disallowed. AO without any material...

The High Court held that the Assessing Officer (AO) had specifically called for and considered information regarding unsecured loans during the original assessment...

Tribunal held that an order passed following binding precedents cannot be recalled or reviewed based on a subsequent contrary judgment of a higher court. Once an order...

Addition u/s 41 - sick company - cessation of liability towards unsecured loans availed from financial institutions in terms of order of the BIFR - Apex Court has held...

Validity of order of tribunal in Review Appeal - Denial of benefit which was allowed earlier - Power to Review - Therefore, this Court holds that the Review by the...

Additions u/s 68 - Unsecured loans - partnership firm - Making addition of unsecured loans relating to the partnership firm in the hands of the assessee is bad in law...

Deemed income u/s 56(2)(vi) - interest free unsecured loan - amount was received from HUF and was recorded in the balance sheet as liability of unsecured loan - No addition - AT

Addition u/s 69A - unsecured loans - interest expenditure - The case involved disputes over the addition of unsecured loans under section 69A and the disallowance of...

Quick Updates: