₹4.81L Housing Loan Repayment Treated as Unexplained u/s 69C: ITAT Remands Matter to AO for Reassessment After Reviewing Assessee’s Evidence [Read Order]
The assessee contended that the repayment was funded from business sales and personal savings, supported by a pigmy account and ledger records. The ITAT noted that evidences were not properly examined by the AO or CIT(A) and remanded the matter to the AO for verification and fresh adjudication
The Panaji Bench of the Income Tax Appellate Tribunal (ITAT) remanded the matter to the Assessing Officer (AO), as the Assessing Officer had treated the assessee’s housing loan repayment of ₹4.81 lakh as unexplained expenditure under Section 69C, alleging it was made from undisclosed sources.
The assessee Allavuddin Unmarasab Hurakadli had not filed the return of income for A.Y.2016-17.The AO, based on the information found, that the assessee had made substantial cash deposits in the bank accounts during the F.Y.2015-16. The AO believed that the income had escaped the assessment and issued a notice. Further, a notice along with the questionnaire was issued. The assessee filed the return of income in compliance with the notice.
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The AO, on perusal of the statement of the assessee filed in the assessment proceedings, found that the assessee had disclosed the repayment of a housing loan of Rs. 4,81,109/- and since these facts were not reflected in the statement, the AO believed that such repayment had been made out of undisclosed sources and invoked the provisions of section 69C of the act and made addition of Rs.4,81,109/- as unexplained expenditure.
Aggrieved by the order, the assessee filed an appeal before the CIT(A). The CIT(A) confirmed the action of the AO and dismissed the appeal. Aggrieved by the order of the CIT(A), the assessee filed an appeal before the Tribunal.
The assessee submitted that in response to the notices, he had submitted the explanations along with the details before the authorities. The assesses contended that the sources for housing loan repayment were met out of revenue generated through sales and savings of the
assessed and supported with the evidence in the paper book.
The assessee also submitted that he had made repayment of a housing loan to the Jana Utkarsh Urban Coop Credit Society Ltd and demonstrated the statement of account disclosing the obtaining of the loan and repayment of the loan. The amount was transferred from the pigmy deposit account of the assessee.
Further, the assessee has made deposits in the pigmy account maintained with the said bank out of sales/ savings generated from business, and the transactions were explained in the ledger account.
The single bench of Pavan Kumar Gadale (Judicial Member) restored the issue to the AO to verify/examine and adjudicate afresh.
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