The Tax Publishers2020 TaxPub(DT) 5591 (Mum-Trib)

INCOME TAX ACT, 1961

Section 254(1)

Since additional evidences furnished by assessee went to the root of the matter of addition made in respect of the unsecured loan creditors and, therefore, in the interest of justice additional evidences were admitted and issue of addition towards unsecured loans was restored to AO for deciding afresh in accordance with law.

Appeal (Tribunal) - Additional evidences - Admissibility - Evidences going to the root of matter

Assessee was required to furnish details of such unsecured loans received during the year. Assessee furnished certain details in respect of these unsecured creditors. AO noticed that assessee could not furnish any details in respect of 11 parties from whom unsecured loans were received and in respect of 15 parties from whom assessee received unsecured loans, assessee furnished only confirmations. Since assessee could not furnish bank statements and other details of unsecured loans AO treated entire unsecured loans as unexplained cash credits under section 68. Before Tribunal, assessee submitted additional evidences furnished were in the form of PAN, Addresses, bank statement evidencing cheque receipt details, confirmations of loan creditors, Income Tax Returns of the creditors, Form - 15G for non-deduction of TDS from creditors, loan repayment details along with bank statement of assessee highlighting relevant entries. Held: All the additional evidences furnished by assessee went to the root of the matter of addition made in respect of these unsecured loan creditors and, therefore, in the interest of justice additional evidences were admitted and issue of addition towards unsecured loans was restored to AO for deciding afresh in accordance with law.

REFERRED :

FAVOUR : Matter remanded.

A.Y. :


INCOME TAX ACT, 1961

Section 56

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