The Income Tax Appellate Tribunal (ITAT), Delhi bench consisting of Anil Chaturvedi, Accountant Member, and Kul Bharat, Judicial Member confirmed the order of AO where the assessee failed to produce supporting evidence regarding the claim of unsecured loans.
The assessee, Vijay Gupta filed a return of income declaring an income of Rs.5,18,781/- after claiming a deduction by the assessee. The same was processed u/s 143(1) of the Income Tax Act, 1961. Subsequently, the case was selected for scrutiny assessment under CASS, and notice u/s 143(2) was issued and served upon the assessee. In response to the notices issued, the assessee along with Shri Ganesh Bhardwaj, (Counsel)attended the assessment proceedings from time to time. The Assessing Officer (AO) after considering the submissions of the assessee, proceeded to make additions of Rs.93,50,014/- on account of short-term Capital Gain (“STCG”), Rs.74,00,000/- on account of unexplained unsecured loan and Rs.30,897/- on account of disallowance of deduction claimed u/s 80C & 80D of the Act. Thus, the AO assessed the income at Rs.1,72,99,692/-, against the income of Rs.5,18,781/- declared by the assessee. Aggrieved by the order the assessee preferred to appeal before the Commissioner of Income Tax (CIT), who after considering the submissions of the assessee, sustained the addition made by AO. Aggrieved by the order of CIT, the appellant preferred an appeal before ITAT.
The Counsel for the respondent, Umesh Takyar submitted that AO was justified in computing the capital gain as the transfer of property was completed and all conditions for taxability of STCG were satisfied.
The Tribunal opined “The assessee was required to prove the identity of creditors, genuineness of transaction and creditworthiness of creditors. The assessee grossly failed to do so. Therefore, in the absence of the supporting evidence regarding the claim of unsecured loans, we do not see any infirmity in the finding of authorities below”
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