The Tax Publishers2020 TaxPub(DT) 2332 (Ind-Trib)

INCOME TAX ACT, 1961

Section 68

Where assessee challenged addition under section 68 on account of unexplained loans received by assessee from 192 persons contending that addition for unexplained cash deposited was made by completely ignoring the fact that source of cash deposit was from unsecured loan from 192 parties and, therefore, addition for unexplained deposits was double addition, AO was directed to verify all the details and material evidence brought on record by assessee in support of assessee's claim for telescoping benefit of cash deposits out of funds received from cash creditors.

Income from undisclosed sources - Addition under section 68 - Unexplained cash deposit in bank account - Assessee seeking telescoping benefit out of funds received from cash creditors already subjected to addition

AO made addition under section 68 on account of unexplained loans received by assessee from 192 persons. Also, AO made addition on account of unexplained cash deposit in bank acount. Assessee contended that addition for unexplained cash deposited was made by completely ignoring the fact that source of cash deposit was from unsecured loan from 192 parties and, therefore, addition for unexplained deposits was double addition. Held: In the interest of justice issue was restored to AO for de novo adjudication AO was directed to accept all the details and material evidence brought on record by the assessee in support of assessee's claim for telescoping benefit of cash deposits out of funds received from cash creditors.

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2007-08 & 2008-09



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