Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (6) TMI 898 - ITAT JAIPURRevision u/s 263 - unsecured loans receipts - HELD THAT:- We find that one of the key reasons for scrutiny selection was verification of unsecured loans and therefore, it was incumbent on the part of the Assessing officer to carry out necessary examination by calling for information/documentation from the assessee and verifying such information/documentation so submitted before taking any view in the matter. Unsecured loan from Sh. Bharat Harwani, Pr CIT has recorded a finding that the assessee has furnished a photocopy of ledger confirmation, which does not have any signature from Sh. Bharat Harwani and further no ITR and bank statement has been furnished of Sh. Bharat Harwani so as to establish/prove the genuineness and creditworthiness in respect of this unsecured loan - What the ld Pr CIT has stated are basic documentation which is reasonably expected to be called for and examined by the AO as part of standard operating procedure for verifying the genuineness of loan transaction and creditworthiness of the lender. There is nothing on record that the AO on receipt of so called confirmation has called for any further information/documentation from the assessee or carried out any independent examination u/s 133(6) Given that the AO basis a mere confirmation so filed by the assessee which in reality is not a confirmation in absence of signature and authentication has accepted the loan transaction is clearly not just a case of lack of enquiry but a case of no enquiry rendering the order so passed as clearly erroneous and prejudicial to the interest of Revenue. Similar fact pattern exist in respect of other two transactions with Sh. Rahul Harwani and Sh. Sunil Israni and we agree with the findings of the ld Pr CIT that the order so passed by the AO is erroneous and prejudicial to the interest of the Revenue - credits by way of journal entries in account of Sh Rahul Harwani for purchases/expenses cannot be termed in the nature of “loans and advances” in terms of Section 269SS and to this extent, the findings of the ld Pr CIT are set-aside. Appeal of the assessee is partly allowed.
|