TMI Blog2015 (3) TMI 1422X X X X Extracts X X X X X X X X Extracts X X X X ..... along with the return of income. All these records are available with the assessing officer. The mistake apparent from record does not mean the assessment order itself but the records which are available with the assessing officer. Though the assessee could not furnish the confirmation of the loan and other evidences but such a loan could not have been added in the A.Y. 2005-06 as the same was taken in the earlier years and is being carried forward. In this year it is appearing balance of the current year. Legally such an addition could not sustained in this year and therefore addition made by AO u/s 68 is a legal mistake, which can be rectified within the ambit and provisions of section 154. The grounds raised by the assessee is treated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ster prior to A.Y. 1997-98, which is also reflected in the balance sheet and return of income filed from time to time, right from the A.Y. 1997-98 onwards. The copy of balance sheet return of income from the A.Y. 2003-04 onwards were also filed. It was also stated that during the course of the assessment proceedings loan confirmation was not required by the AO, therefore, there was no occasion to file the same. The assessing officer however rejected the assessee s application on the ground that, there is no mistake apparent on the record within section 154, in the assessment order dated 28.12.2007. 3. Before the Ld.CIT(A), the assessee submitted that, during the course of the assessment proceedings, the assessee had submitted all details ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was an old loan duly reflected in the income tax records of the earlier years as the loan was taken in the year 1997, for the amount aggregating to Rs.3,25,000/- .Section 68 stipulates that any unexplained sum found credited in the books of the assessee for any previous year, then the same may be taxed as income of the assessee for that previous year. Thus, section 68 can only be invoked if the loan has been taken or the sums have been credited in the books in the relevant previous year for which assessment is being made and not the loans taken in the earlier years. From the income tax records, it is evident that this loan is coming forward from last several years and is reflected in the balance sheet of the assessee filed for the earlier ..... X X X X Extracts X X X X X X X X Extracts X X X X
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