Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (7) TMI 1070 - AT - Income TaxAddition u/s 68 - addition of unsecured loans - HELD THAT:- A.O without identifying any particular unsecured loan of Mumbai or Kolkata in the group summary has made addition of difference in opening and closing balance of unsecured loans. We find that the methodology adopted by the A.O cannot be accepted, we on perusal of the group summary found that in the opening balance there are 7 unsecured loan creditors of Mumbai and 6 unsecured loan creditors of Kolkata and some of the loan creditors have been squared off during the year. Whereas, in few cases, additional loans have been accepted and the same is reflected as the closing balances in the ledger account of the group summary provided. AO could have made enquiry in respect of any particular unsecured loan creditor and some of the loan creditors have been repaid which was accepted. Considering the overall facts and evidences, we find the submissions of the Ld.AR are realistic and duly supported by the material and the confirmations on record. A.O cannot make the addition of unsecured loans u/s68 of the Act considering only the opening and closing balance of the unsecured loans in group summary. The unsecured loans may increase or decrease and accrued interest is credited and the actual interest payment by the assessee. Further each unsecured loan account has to be independently dealt and if the loan account does not satisfy the three ingredients of identity, creditworthiness and genuineness of the transaction, the provisions of Sec.68 of the Act are applicable. But in the present case, the assessment order clearly indicates that the A.O has only considered the opening and closing balance of the unsecured creditors without referring to any particular loan creditor - Decided in favour of assessee. Disallowance of repairs and maintenance expenses claimed in profit and loss account - AR submitted that these are the repairs and maintenance expenditure incurred by the assessee to maintain the building in good condition and is an allowable claim - HELD THAT:- type/ nature of expenditure explained above does not qualify for deduction u/s 24 of the Act and they are necessarily incurred for maintaining the school building in usable and good condition for the safety, health and protection of school children. We are of the substantive opinion that the claim of expenses cannot be denied. Assessee has various business activities including the running of the schools and the A.O has not doubted the genuineness of the expenses. Accordingly, we set aside the order of the CIT(A) on this ground of appeal and direct the Assessing officer to delete the addition and allow the ground of appeal in favour of the assessee.
|