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2016 (11) TMI 1301

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..... e impugned order of the CIT(A) becomes unsustainable, as he has failed to examine and verify the contentions put forth by the assessee in the ground raised before him. In the event the said unsecured loans from three parties are found to be old loans and pertain to a period prior to the year under consideration, as contended by the assessee, then the addition under section 68 of the Act as upheld by the CIT(A) cannot be made or sustained. In this view of the matter, we are constrained in the interest of equity and justice to set aside the finding in the impugned order of the CIT(A) and restore the matter to his file to consider and adjudicate the grounds raised before him - Decided in favour of assessee for statistical purposes. - ITA No. .....

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..... dated 29/12/2011 determining the income of the assessee at ₹ 19,06,830/-; in view of the additions of ₹ 12,44,467/- in respect of unexplained unsecured loans appearing in the assessee s Balance Sheet as on 31/3/2009. 2.2 Aggrieved by the order of assessment for assessment year 2009- 10, the assessee preferred an appeal before the CIT(A) -18, Mumbai. The grounds raised by the assessee before the CIT(A) are as under:- 1. The Learned assessing officer has failed to appreciate that all amount has been outstanding in the books of assessee since long time and same were reflected in previous balance sheet also which is submitted to the Assessing Officer. 2. The confirmation of accounts are attached herewith. 2.3 Th .....

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..... s of Section 68 the onus is always on the assessee to submit complete details to prove the identity, creditworthiness and genuineness of the creditor. But in the present case, the assessee has failed to submit any documentary evidence to prove these conditions. To strengthen the view of the reliance is placed on the following decision. (a) Roshan Di Hatti Vs. CIT, 107 ITR 938 (SC) (b) CIT Vs. Devi Prasad Vishwanath Prasad, 72 ITR 194(SC) (c) CIT vs. Ganapati Mudaliar, 53 ITR 623 (SC) (d) CIT vs. M.Govindarajulu Mudaliar vs. CIT, 34 ITR 807 (SC) (e) CIT vs. Durga Prasad More 72 ITR 807 (SC) (f) Sumat Dayal Vs. CIT, 214 ITR 801 (SC) In view of the facts and circumstances and various court decisions on .....

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..... tive was heard and he placed strong reliance on the orders of the authorities below in holding and confirming the addition of ₹ 12,44,467/- in respect of unsecured loans of three parties as unexplained unsecured loans under section 68 of the Act. 6.1 We have heard the Ld. Departmental Representative and perused and carefully considered the material on record. According to the Assessing Officer , the veracity of the unsecured loans amounting to ₹ 12,44,467/- taken from three parties, as reflected in the assessee s balance sheet as on 31/3/2009, cannot be ascertained and, therefore, being unexplained were to be brought to tax under section 68 of the Act as income of the assessee. 6.2 On appeal, the CIT(A) has confirmed the s .....

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..... he said unsecured loans from three parties are found to be old loans and pertain to a period prior to the year under consideration, as contended by the assessee, then the addition under section 68 of the Act as upheld by the CIT(A) cannot be made or sustained. In this view of the matter, we are constrained in the interest of equity and justice to set aside the finding in the impugned order of the CIT(A) and restore the matter to his file to consider and adjudicate the grounds raised before him (supra) after causing necessary enquires in the matter and after affording the assessee adequate opportunity of being heard and to file details/submissions in this regard. We hold and direct accordingly. Consequently, grounds raised by the assessee ar .....

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