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The Tax PublishersITA No. 256/Mum/2019
2020 TaxPub(DT) 5454 (Mum-Trib)INCOME TAX ACT, 1961
Section 68
No adverse inference so much as to treat unsecured loans as bogus could be drawn solely on the ground of section 133(6) notice remaining unserved when AO had been provided all the details for verification and assessee duly explained before AO that the loans were taken 8 years before and assessee was not in a position to bring loan creditors before AO, however, loans were duly paid back.
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Income from undisclosed sources - Addition under section 68 - Receipt of unsecured loans - Notice under section 133(6) issued to lenders returned unserved
AO treated loan amount received by assessee as unexplained credit under section 68 on the ground that section 133(6) notices issued to lenders returned unserved. Held: No adverse inference so much as to treat unsecured loans as bogus could be drawn solely on the ground of section 133(6) notice remaining unserved. Assessee duly explained before AO that the loans were taken 8 years before and assessee was not in a position to bring loan creditors before AO, however, loans were duly paid back. AO had been provided all the details for verification. He did not bother to make any examination. He did not even issue any summon to concerned parties. Accordingly, AO was not justified in taxing loan amount under section 68.
Applied:ITO, Mumbai v. Pratima Ashar (2019) 177 ITD 481 (Bom-Trib) : 2019 TaxPub(DT) 5070 (Mum-Trib) and CIT v. Orchid Industries (P) Ltd. (2017) 397 ITR 136 (Bom-HC) : 2017 TaxPub(DT) 1911 (Bom-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2008-09
IN THE ITAT, MUMBAI BENCH
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