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2020 (10) TMI 1194 - AT - Income TaxAddition u/s 69 - investment not recorded in the books of accounts - HELD THAT:- We find that there is no specific finding which has been recorded by the ld CIT(A) regarding the source of investment being the unsecured loan taken from Shrishtianand Builders and Colonizers - AO in the remand report has also merely gone by the bank statement of Shrishtianand Builders and Colonizers and confirmed the genuineness of the loan transaction. Where a loan transaction has been claimed to be entered into by the assessee, the necessary attributes of such loan transaction in terms of tenure, purpose, rate of interest, repayment and hypothecation/guarantee for availing such loan transaction needs to be substantiated by the assessee and which needs to be examined by the AO. Disbursement of loan and its utilization for making the aforesaid investment needs to be verified. There is no finding recorded by either of the two authorities and the matter has been summarily decided. Such a finding clearly deserve to be set-aside and the matter needs to be examined a fresh as per law. Unsecured loan transaction with M/s Grass Field Villa Pvt Ltd to be satisfactorily explained which we again found to be unacceptable - CIT-A referred to balance sheet, income tax return and bank statement of M/s Grass Field Villa Pvt Ltd and another firm by name of M/s Grass Field Farms and Resorts Pvt ltd to hold the transaction to be duly explained however, he has again failed to consider the necessary attributes of such loan transaction in terms of tenure, purpose, rate of interest, repayment and hypothecation/guarantee for availing such loan transaction and no finding has been recorded by him in this regard. Similar finding has been recorded by the ld CIT(A) regarding loan transaction with Mahender Kumar Meena which deserve to be set-aside to be examined afresh. During the course of hearing, the ld AR has sought to submit additional evidence by way of bank statement of Shri Ashish Choudhary in support of another unsecured loan transaction of ₹ 26,00,000/- which again needs to be verified. Investment being made out of assessee’s own funds - No finding recorded by either of the two authorities as to the claim of the assessee regarding investment being made out of assessee’s own funds. Once the investment has been made during the year vide registered sale deed dated 21.11.2011 and the assessee claims the same to be made out of his own funds, then, it is incumbent on part of the assessee to corroborate the same with his books of accounts and the taxing authorities are required to verify the same and record a finding as to their satisfaction or otherwise of such claim being made by the assessee and whether the source of such investment has been found duly explained or not. Source of investment through loan transaction as well as own funds in purchase of the aforesaid pieces of land through registered sale deeds dated 21.11.2011 including that of the stamp duty needs to be examined afresh. - Both the appeals of the Revenue and the assessee are allowed for statistical purposes.
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