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2013 (9) TMI 338 - AT - Income TaxAddition u/s 68 – credit of earlier year, additions made during the current year under dispute - Held that:- After verification of the sub dealer deposit account, has noted that the addition was erroneously made - such deposits were received in A.Y. 2003-04 and 2004-05 for which the balance sheets for those years were filed. Further, the learned CIT(A) himself admits that technically the addition cannot be made u/s.68 during the year, still he had confirmed the addition, which in our opinion was not proper. Under these circumstances, the CIT(A), in our opinion, was not justified in confirming the addition made by the AO. Whatever remedy available with the department could have been utilised in the preceding years. However, the same cannot be a ground to make the addition during this year. In this view of the matter, we set-aside the order the CIT(A) and direct the AO to delete the addition. - Decided in favor of assessee. Unexplained Loan Credits for Nonbusiness Purposes - Held that:- Since the assessee had produced the loan creditors before the AO who have confirmed to have given the loan - therefore, the same in our opinion should be allowed - The AO disallowed an amount on account of loan from 7 loan creditors on the ground that the assessee could not substantiate the identity, credit worthiness and the genuineness of the transactions - We find the assessee filed certain details before the CIT(A) who called for a remand report from the AO - the assessee has produced the loan creditors before the AO who recorded their statements and since the loan creditors filed their bank accounts and the AO was satisfied regarding the genuineness of the transaction and their credit worthiness, therefore, we find no reason as to why the same should not be accepted - We therefore set-aside the order of the CIT(A) on these 2 loans and direct the AO to allow these 2 loans as genuine. - Decided in favor of assessee.
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