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2012 (7) TMI 345 - HC - Income TaxAddition to the income made on account of unexplained loans and interest thereon - Tribunal confirmed CIT(A) order for deletion - Held that:- Tribunal being the appellate authority vis-à-vis CIT (Appeals) was under the duty to satisfy itself that the reasoning adopted by the CIT (Appeals) in a case where the appeal was allowed and the reasoning of the Assessing Officer displaced was bound to ensure that there were adequate and sound reasons for doing so. Unfortunately, the Tribunal did not display the diligence that was called for and record its satisfaction that the CIT (Appeals)’ reasoning overturning the Assessing Officer’s findings were sound and justified - As loans received are utilized only for partners personal requirement & non-business use and whereas creditors did not respond to the summons issued by the Assessing Officer during the course of the assessment proceedings disallowance in regard to unexplained cash credit is warranted - remit the matter for reconsideration on the question of adding back of the cash loans and interest thereon for the concerned assessment years - against assessee.
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