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| The Tax Publishers2020 TaxPub(DT) 4083 (Del-Trib) INCOME TAX ACT, 1961
Section 68
Where short-term loan advance received by assessee was duly repaid through proper banking channel and lender company had shown the same in its Ledger Account, no addition can be made in the hands of the assessee under section 68.
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Income from undisclosed sources - Addition under section 68 - Short-term advance receipt - Repaid through proper banking channel
AO made addition under section 68 of short-term advance receipt. Against this assessee stated that he has credited this entry and repaid the same in the books of accounts which was shown in paper book, which remained explained, therefore, section 68 was not applicable. Held: Assessee had received a short-term advance and repaid the same amount vide cheque to the lender company and the same was entered in the books of account of the assessee. The Leger account of lender also established the same. Therefore, where assessee had repaid the advance through proper banking channel and lender company had shown the same in its Ledger Account, therefore, no addition can be made in the hands of the assessee under section 68.
REFERRED :
FAVOUR : In favour of assessee.
A.Y. : 2010-11
IN THE ITAT, DELHI BENCH
H.S. SIDHU, J.M. & ANIL CHATURVEDI, A.M.
Neotech Nutrients (P) Ltd. v. ACIT
ITA No. 5140/Del/2019
29 September, 2020
In favour of assessee.
Assessee by: Shaantanu Jain, Advocate
Department by: Umeshtakyar, Sr. Departmental Representative
H.S. Sidhu, J.M.
This appeal filed by the Assessee is directed against the impugned Order, dated 30-3-2019 passed by the learned Commissioner (Appeals)-37, New Delhi in relation to assessment year 2010-11 on the following grounds :--
'1. Because the action is challenged on facts and law that the reassessment proceedings under section 147 are void ab initio on the ground that there was no valid service of notice under section 148 of the Income Tax Act, 1961.
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