The Income Tax Appellate Tribunal (ITAT), Mumbai Bench deleted the addition of long-term capital gains as undisclosed income by treating it as bogus.
The assessee challenged the validity of assessment under section 153A, addition under section 68 of long term capital gains as undisclosed income by treating the same as bogus, addition of commission on capital gain, addition under section 68 of loans, addition of interest on loans.
As regards addition under section 68 of the Act of Rs. 20 lakhs loan taken Counsel of the assessee submits that during the course of assessment proceedings under section 153A read with section 143(3), the assessee has submitted detailed explanation and documentary evidence in respect of the loan taken from M/s. Saraf Nivesh Pvt. Ltd.
The assessee urged that the loan taken from M/s Saraf Nivesh Pvt Ltd has already been repaid in the same year i.e. Assessment Year 2013-14, therefore additions under section 68 are not sustainable.
The assessee relied upon Bombay High Court in the case, wherein it has been held that when the amounts borrowed by assessee which are alleged as unexplained cash credit to make additions by invoking section 68, no addition can be made when such borrowings are repaid. He further relied on the submission and judgements relied on in submission for Assessment Year 2012-13.
The Coarm Consisting of Ramlal Negi and Shahmin Yahya noted that the additions for an assessment year, in this case, is without reference to any incriminating material found during the search. Since the assessment has been done under section 153A in case of an unabated assessment held that the addition is not sustainable dehorse any incriminating material.Subscribe Taxscan AdFree to view the Judgment
Support our journalism by subscribing to Taxscan AdFree. We welcome your comments at firstname.lastname@example.org