Addition of LTCG and Unsecured Loans Due to Lack of Documentation: ITAT Remands Matter to AO [Read Order]
The ITAT allowed the assessee another chance to present evidence, setting aside the orders of both the AO and CIT(A) .
![Addition of LTCG and Unsecured Loans Due to Lack of Documentation: ITAT Remands Matter to AO [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/01/ITAT-Kolkata-LTCG-addition-unsecured-loans-lack-of-documentation-ITAT-remands-AO-review-Section-68-of-Income-Tax-Act-Section-68-Income-Tax-Appellate-Tribuna-Income-Tax-taxscan.jpg "Addition of LTCG and Unsecured Loans Due to Lack of Documentation: ITAT Remands Matter to AO [Read Order]")
The Kolkata Bench of Income Tax Appellate Tribunal(ITAT) remanded the matter to Assessing Officer (AO) involving additions of Rs. 91,26,731 as long-term capital gains and Rs. 1,57,610 under Section 68 of Income Tax Act,1961 for an unsecured loan. Germinda Pvt. Ltd,appellant-assessee,filed its return for A/Y 2012-13, reporting no income. During scrutiny, the appellant was asked...
The Kolkata Bench of Income Tax Appellate Tribunal(ITAT) remanded the matter to Assessing Officer (AO) involving additions of Rs. 91,26,731 as long-term capital gains and Rs. 1,57,610 under Section 68 of Income Tax Act,1961 for an unsecured loan.
Germinda Pvt. Ltd,appellant-assessee,filed its return for A/Y 2012-13, reporting no income. During scrutiny, the appellant was asked to provide details of a property sold but failed to submit the required documents. As a result, the AO added Rs. 91,26,731 as long-term capital gains and Rs. 1,57,610 under Section 68 for an unsecured loan. The appellant's appeal was dismissed by the Commissioner of Income Tax (Appeals)[CIT(A)] due to the lack of response.
Law and Procedure for Filing of Appeals
Section 68 of the Act deals with unexplained cash credits. If a taxpayer has any unexplained amounts credited in their books, it will be treated as income and taxed. The taxpayer must prove the source and identity of the credit. If they cannot, the amount will be added to their income.
The assessee aggrieved by the decision appealed before the tribunal.
The two member bench comprising Pradip Kumar Choubey(Judicial Member) and Rajesh kumar(Accountant Member) noted that the AO added the amount because the assessee failed to provide documents related to the stamp value of the property. The CIT(A) dismissed the appeal through an ex parte order, stating that the appellant was given sufficient opportunities to respond but did not comply.
The assessee counsel requested another opportunity to present the case, citing sufficient evidence to support their claim. The tribunal agreed, set aside the orders of the AO and CIT(A), and remanded the case to the AO for a fresh decision. It also instructed the assessee to ensure timely compliance in the proceedings.
In short,the appeal filed by the assessee was allowed.
To Read the full text of the Order CLICK HERE
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