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2016 (5) TMI 427 - AT - Income TaxAddition on unsecured loans - Held that:- Assessee had not received any fresh loan during the year under consideration, that all the loans were appearing on the first date of the assessment year are older loans. In the earlier years, the assessee had filed confirmation letters or other documentary evidences to show the genuineness of the transaction. In those years, the AO. s had dealt the loans independently. Either they had not made any addition u/s. 68 of the Act by holding that the loan transactions were fictitious or they have made additions in that particular year. In our opinion, the AO can invoke the provisions of section 68 of the Act for the loans taken during a particular assessment year. But, if a loan is received in earlier years and accepted by him in those year/(s) or not doubted in those year/(s), then in the subsequent years, he cannot add said amount, while computing the total income of an assessee. In short, opening balances of loans of earlier years cannot be added to the income of the assessee, under section 68 of the Act, in subsequent years. In the case, under consideration, all the loans are of earlier years, as stated earlier. In the cases of Manju Bafna, Praveen Bafna, Shailesh Bafna additions were made in earlier year . Therefore, in our opinion no addition can be made for the year under appeal, as it would result in double addition of the same amount. As far as the provisions of section 28 (iv) of the act is concerned we are of the opinion that the FAA had wrongly applied the section. The provisions of the section can be invoked if the benefit or perquisite is not in form of cash. It cannot be said that the loan received by the assessee could be termed as benefit/perquisite. No justification in invoking the provisions of section 68 - Decided in favour of assessee
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