INCOME TAX ACT, 1961

Section 68 r/w section 153C

Income from undisclosed sources - Addition under section 68 - Unaccounted credit/loan -

Assessee obtained loan from S N, assessee placed several documents before the authorities below to prove that genuine transaction was conducted in the case of the assessee. The ITAT in the case of S N also held that S N was 'non-resident' and was not taxable in India. The order of the ITAT had been confirmed by Delhi High Court. The CIT(A) deleted the addition made by the AO on the ground that it was genuine and assessee was a non-resident. Held: Source of credit had been explained by the assessee through evidence on record. Therefore, same addition could not be made in the hands of the assessee. It was also clear that during the course of search, no incriminating material was found so as to make this addition. In this case, originally, assessment was completed under section 143(3) and no seized material had been referred to so as to make this addition against the assessee. In this case, protective addition was made in the hands of S N of the same amount. Since in the case of S N, he was held to be 'non-resident', therefore, no addition can be made in his hands. On the basis of documentary evidences on record and considering various litigation in the case of group in which similar additions have been deleted, therefore, CIT(A), on proper appreciating of facts and material on record, correctly deleted the addition of alleged unexplained credit.

Relied :Kabul Chawla 2015 TaxPub(DT) 3486 (Del-HC): (2016) 380 ITR 573 (Del).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

INCOME TAX ACT, 1961

Section 69

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