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ITAT restored issue of addition on unsecured loan to AO
ITAT restored issue of addition on unsecured loan to AO
"Pyramid Buildwelll Pvt Ltd disclosed nil income. During previous year it had not carried on any business activities. Assessment was completed u/s 144 (of Income Tax Act, 1961) at a total income of Rs. 1,79,76,000. AO made addition on account of unsecured loan and investments for purchase of land. CIT(A) confirmed AO’s order. ITAT restored the matter to AO for de novo assessment, as affidavit of Pyramid’s director had not been disputed."-500670
1. Pyramid Buildwelll Pvt Ltd filed its return of income disclosing nil income.
2. During the previous year relevant to the assessment year under consideration it had not carried on any business activities.
3. Assessment was completed u/s 144 (of Income Tax Act, 1961) at a total income of Rs. 1,79,76,000.
4. AO made addition of unsecured loan of Rs. 1,56,00,000 and addition on account of investments for the purchase of land for Rs. 29,76,000.
5. CIT(A) confirmed the AO’s order.
On appeal, the ITAT held as under:
6. The averments made in the affidavit filed by one of the Directors of the appellant's company have not been disputed by the Department.
7. We are of the considered opinion that the interest of justice would meet, if the matter is restored to the file of the Assessing Officer for de novo assessment, after affording reasonable opportunity of being heard to the assessee company.
Case Reference - Pyramid Buildwell Pvt. Ltd Vs. Income Tax Officer.
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: 'F': NEW DELHI
BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND
SMT. SUCHITRA KAMBLE, JUDICIAL MEMBER
ITA No. 6238/Del/2013
(Assessment Year: 2006-07)
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