2023 (3) TMI 522 - AT - Income Tax

Addition u/s 68 - loan received treated as unexplained credit in the book of accounts of the Appellant - Admission of additional evidence - HELD THAT:- Transaction under consideration is unsecured loan transaction. Similar loan transaction with the same lender was accepted as genuine in the assessment proceedings for the immediately preceding assessment year (i.e., Assessment Year 2012-13) after scrutiny assessment. Assessing Officer and CIT(A) have not doubted the identity of the lender.

The Appellant had contended that the day-to-day operations of the proprietorship concern were managed by her husband who passed away after prolonged illness on 14.01.2017, i.e., few months after passing of the Assessment Order. Even if the documents filed by the Appellant before CIT(A) are considered to be additional evidence as alleged by the Assessing Officer, though the CIT(A) has not held so while disposing off the appeal, the Tribunal would not, in our view, be precluded to consider the same.

Accordingly, in view of the above, we accept the contention of the Appellant that the Assessing Officer as well as the CIT(A) erred in making/confirming addition in the hands of the Appellant under Section 68 - Decided in favour of assessee.