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| The Tax Publishers2019 TaxPub(DT) 7611 (Kol-Trib) INCOME TAX ACT, 1961
Section 2(24)
Where Revenue itself made it clear that assessee and his private limited companies raised loans in question, that being the case, it could be very well inferred that the same were not unexplained cash credits and accordingly, AO was directed to treat such loans as duly explained.
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Income - Chargeability - AO alleged assessee failed to repay loans in accordance with terms of agreements -
Assessee took loans for proprietorship concerns held by him and for private limited companies from a bank under Retail Warehouse Receipt Based Finance Scheme. Revenue alleged that the assessee failed to repay the loans in accordance with the terms of agreements drawn with the bank. Therefore, the loan amount was treated as the assessee's income within the scope of section 2(24) read with section 28(iv). Held: Revenue itself made it clear that the assessee and his private limited companies raised loans in question. That being the case, it could be very well inferred that the same were not unexplained cash credits. Further, there was also no material on record that the said loan liability was a subject-matter of remission or cessation under section 41(1). Accordingly, the AO was directed to treat the assessee's loan fund amounts raised in his name or in case of the private limited concerns as duly explained.
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2008-09 & 2009-10
INCOME TAX ACT, 1961
Section 69
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