The Ahmedabad Bench of Income Tax Appellate Tribunal ( ITAT ) referred the matter back to the Assessing Officer ( AO ) regarding the addition of Rs. 99.52 lakh under section 69 of Income Tax Act,1961 for unexplained loans.
Dharmendrasinh Manharsinh Chudasama,appellant-assessee,filed his return on 31.12.2021, reporting total income of Rs.1,35,200/- and exempt income of Rs.52,30,000/-. The assessment was completed under section 144B due to the assessee’s not responding to six notices, except the final one. This led to the total income being determined at Rs.1,00,91,700/-.
The assessee, dissatisfied with the decision, appealed to the Commissioner of Income Tax(Appeals)[CIT(A)], who dismissed the appeal because the details of the lenders and the source of investment were missing.
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The assessee then appealed before the tribunal and raised several grounds.He claimed the CIT(A) was wrong in upholding the addition of Rs. 99,52,500/- under section 69 and that it should be deleted. The assessee explained the investment in property and argued that the addition for unsecured loans was wrong.
He also said the CIT(A) rejected his legal grounds without proper reason, and the assessment should be quashed. The assessee pointed out that no show-cause notice was issued, and the CIT(A) did not consider the documents he submitted, like Permanent Account Number(PAN),Income Tax Return (ITR), and bank statements. He also argued that the penalty and interest charges should be removed.
The two member bench comprising Dr.BRR Kumar(Vice President) and Siddhartha Nautiyal(Judicial Member) in its decision, noted that the assessee had offered to provide all the details about the loan parties to the revenue authorities, which they had now gathered.
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After reviewing the facts, the ITAT decided that allowing the AO to examine these details would not harm the revenue. Therefore, the matter was sent back to the AO for further review and necessary action.
In short,the appeal filed by the assessee was allowed for statistical purposes.
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