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| The Tax Publishers2019 TaxPub(DT) 3332 (Mum-Trib) INCOME TAX ACT, 1961
Section 68
There was no requirement on the part of assessee to prove the source of receipt when it was merely the repayment of loan given by assessee. Hence, AO was not justified in making addition under section 68.
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Income from undisclosed sources - Addition under section 68 - Receipt in respect of repayment of loan -
AO made an addition under section 68 alleging that assessee had not explained the source of funds. Assessee contended that amount received by it was current liability in subsequent years and the said liability was repaid. Held: Since this was a case for repayment of loan given by the assessee, there was no requirement on the part of assessee to prove the source of funds. Accordingly, AO was directed to delete the addition made under section 68.
Relied on:Pr. CIT v. Veedhata Tower Pvt. Ltd. [ITA No. 819 of 2015] : 2018 TaxPub(DT) 2030 (Bom-HC), and Pr. CIT v. SDB Estate Pvt. Ltd. [ITA No. 1356 of 2015] : 2019 TaxPub(DT) 0280 (Bom-HC)
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2009-10
INCOME TAX ACT, 1961
Section 68
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