ITAT deleted addition u/s 68 holding it was fully explained
ITAT deleted addition u/s 68 holding it was fully explained
Assessee was into arranging seminars etc. It had shown unsecured loans of Rs. 32.13 lakhs, and could furnish details of unsecured loans of Rs 23,64,500. AO made addition of sum which was unproved. Assessee had purchased a car and made downpayment, which was not explained. AO made addition u/s 68. CIT(A) deleted first addition, and confirmed second addition. ITAT deleted addition u/s 68 holding it was fully explained.-500613
1. Assessee was engaged in the business of arranging seminars and educational lectures etc.
2. In the Balance sheet, the assessee had shown unsecured loans of Rs. 32.13 lakhs.
3. In response to the show cause notice, assessee could furnish details of unsecured loans to the extent of Rs. 23,64,500.
4. AO issued notice u/s 133(6) to one of the loan parties but no confirmation was received from her.
5. AO made addition of the sum which was unproved.
6. AO also found that assessee had purcahsed a car and made dowpayment in a sum which was not explained.
7. AO made addition u/s 68.
8. CIT(A) deleted first addition, and confirmed the second addition.
On appeal, the ITAT held as under:
9. Thus, the source of the loan stands fully explained therefore, no addition on account of s 68 could be made.
10. Similarly, loan taken from mother, it is seen that, cheque has been issued in favour of the assessee from her OD Account and Bank has further certified that such cheques have been issued out of the OD account and transferred to the assessee's account in the same Branch.
11. Thus, in this case also the source of the loan stands fully explained.
12. Accordingly, the finding as recorded by the CIT(A) is affirmed and grounds raised by the revenue stands dismissed.
13. Even before us, there is no rebuttal of the such a finding of fact recorded by the CIT(A) by way of any material or evidence on record to show that assessee had availability of cash funds for making the down payment to the HDFC Bank, accordingly, ground no. 1 as raised by the assessee in cross objection is dismissed.
Case Reference - Asst. Commissioner of Income Tax Vs Mr. Nitin V Shah.
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH "G", MUMBAI
BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER
AND SHRI AMIT SHUKLA, JUDICIAL MEMBER
ITA No. : 1537/Mum/2011
(Assessment year :2007-08)
