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2016 (10) TMI 851 - ITAT NEW DELHI

2016 (10) TMI 851 - ITAT NEW DELHI - TMI - Addition u/s 68 - Addition on loan and advances - Held that:- As during the course of assessment proceedings, the assessee filed Confirmation, ITR, Computation of income, Bank statement, and Balance Sheet as on 31.03.2008 of the lender and the payment were made through the loan was also repaid back before the initiation of banking channels. The loan was also repaid back before the initiation of assessment proceedings. It was noted that the AO did not ma .....

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- Held that:- since the amount advanced was in the nature of loan which was repayable in future and hence the provision of section 56(2)(vi) of the Income Tax Act cannot be invoked against the assessee and therefore the assessing officer was rightly directed to delete the impugned addition. In the background, CIT(A) has passed a well reasoned order which does not need any interference hence uphold the same - I.T.A. No. 4896/DEL/2015 - Dated:- 4-10-2016 - SHRI H.S. SIDHU, JUDICIAL MEMBER Departme .....

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ated 11/03/2015 in the case of CIT Vs. Jansampark Advertising and Marketing Pvt. Ltd. and also Bombay High Court (231 ITR 1). 2. The Ld. CIT{A) has erred in deleting the addition of ₹ 22,54,338/- as the Ld.CIT{A) did give any direction to AO to conduct any specific enquiry while seeking remand report and the assessee filed not give any direction to AO to conduct any specific enquiry while seeking remand report and the assessee failed to discharge his onus on the identity, creditworthiness .....

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ge his onus on the identity, creditworthiness and genuineness of transactions. 5. The appellant craves leave to add, alter or amend any of the grounds of appeal before or during the course of appellate proceedings before Hon'ble ITAT appeal. It is prayed that the order of the CIT (A) being contrary to the facts on record and the settled position of law, be set aside and that of the assessing officer be restored. 3. The brief facts of the case are that Assessee filed his Return of income on 2 .....

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00,000/- 3.1 After making the aforesaid additions, the AO assessed the income of the assessee at ₹ 38,14,200/- vide his order dated 10.12.2010 passed u/s. 143(3) of the I.T. Act, 1961. 4. Aggrieved with the aforesaid order of the AO, the assessee filed appeal before the Ld.CIT(A) who vide his impugned order dated 12.1.2011 deleted the additions thereby allowing the appeal of the assessee. 5. Against the order of the Learned CIT(A) the Revenue is in appeal before the Tribunal. 6. Ld. DR rel .....

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g to deletion of addition of ₹ 22,54,388/- is concerned, I find that the Ld. CIT(A) has elaborately discussed the issue and gave his finding vide para no. 4.12 at page no. 14 of his impugned order. For the sake of convenience, the relevant finding of the Ld. CIT(A) is reproduced below:- 4.12 I have carefully gone through the order of the AO and the submissions of the appellant. During the course of assessment proceedings, the appellant filed Confirmation, ITR, Computation of income, Bank s .....

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Moreover there was no adverse material in the hands of AO which casts aspersions on the genuineness of transaction. Mere non compliance of summon cannot be the basis to make addition. So in view of above and on the basis of various court cases relied upon by the appellant and AO, I am unable to sustain the addition of ₹ 22,54,388/- uls 68 of Income Tax Act, 1961 made by the assessing officer and accordingly the assessing officer is directly to delete the impugned addition. 9. After perusin .....

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as in the remand proceedings to discredit the documents produced by the aforesaid aspects and no efforts were made to pursue the lender to determine their credit worthiness. Moreover, there was no adverse material in the hands of AO which casts aspersions on the genuineness of transaction. Mere non compliance of summon cannot be the basis to make addition. So in view of above and on the basis of various court cases relied upon by the assessee before the Ld. CIT(A) and AO, I am of the considered .....

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rd to another effective ground no. 4 relating to deletion of addition of ₹ 14,00,000/- is concerned, I find that the Ld. CIT(A) has elaborately discussed the issue and gave his finding vide para no. 4.21 at page no. 20 & 21 of his impugned order. For the sake of convenience, the relevant finding of the Ld. CIT(A) is reproduced below:- 4.21 I have carefully gone through the submissions of the AR of the appellant and have gone through the assessment order and the confirmation and affidav .....

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to the Ld. AO during the course of appellate proceedings but he did not bring on record an adverse finding with regard to the validity of the documents. I have also gone through the case laws relied upon by the Ld. AR and AO and have come to the conclusion that since the amount advanced was in the nature of loan which was repayable in future and hence the provision of section 56(2)(vi) of the Income Tax Act cannot be invoked against the appellant and therefore the assessing officer is directed .....

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