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| The Tax Publishers2019 TaxPub(DT) 6053 (Karn-HC) : (2019) 265 TAXMAN 0446 INCOME TAX ACT, 1961
Section 68
Where AO made additions under section 68 on account of loans received by assessee from several parties treating same to be bogus, in view of fact that documents furnished by assessee by way of letter of confirmation issued by said parties to establish genuineness of loans received by assessee were not considered by AO, therefore, matter was to be remanded to AO to consider afresh.
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Income from undisclosed source - Addition under section 68 - Unexplained cash credit -
Assessee had received loan of certain amount from several private individuals to meet various expenses. AO was of view that assessee was unable to provide details of parties from whom loans were received, thus, said loan amount was considered as unexplained cash credit under section 68. Assessee contended that during scrutiny assessment, assessee had furnished letter of confirmation furnished by said parties in relation to loan borrowed by assessee from them but AO had not properly appreciated such documents produced by assessee. Held: It was specific case of assessee that letter of confirmation issued by various persons to establish the hand loans received by assessee was not considered. It was apparent that this specific issue relating to the documents furnished by assessee was not addressed by Authorities, albeit a specific ground raised in the appeal memo. It was necessary for quasi-judicial authorities to pass a speaking order giving reasons for the decision while arriving at a decision. Reasons would reflect the mind of the quasi-judicial authorities and the same would be helpful to appellate Forums while adjudicating upon such orders. Hence, matter was remanded back to AO to re-do the assessment in accordance with law after hearing the parties concerned.
REFERRED :
FAVOUR : In assessee's favour by way of remand
A.Y. :
IN THE KARNATAKA HIGH COURT
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