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| The Tax Publishers2020 TaxPub(DT) 4601 (Jp-Trib) INCOME TAX ACT, 1961
Section 69
Where loan transaction has been claimed to be entered into by assessee, the necessary attributes of such loan transaction in terms of tenure, purpose, rate of interest, repayment and hypothecation/guarantee for availing such loan transaction were to be substantiated by assessee and which were to be examined by AO, however, there was no such finding recorded by AO on CIT(A) and examination had been summarily decided. Further there was no finding recorded, as to claim of assessee regarding investment being made out of assessee's own funds. In the entirety of facts and circumstances of matter relating to source of investment was remanded to AO for verification afresh.
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Income from undisclosed sources - Addition under section 69 - Alleged unexplained investment in purchase of land - No proper examination carried out by AO and CIT(A) as regards source of investment
Assessee claimed to have purchased certain pieces of land partly out of loan funds and partly out of own funds. AO not satisfied with assessee's explanation made addition under section 69. CIT(A) deleted addition to a certain extent with respect to loan funds claimed to have been utilized by assessee. Held: There was no specific finding recorded by CIT(A) regarding source of investment being unsecured loan. Also, AO in the remand report had merely gone by the bank statement of lender and confirmed genuineness of loan transaction. Where loan transaction has been claimed to be entered into by assessee, the necessary attributes of such loan transaction in terms of tenure, purpose, rate of interest, repayment and hypothecation/guarantee for availing such loan transaction were to be substantiated by assessee and which were to be examined by AO. Further, disbursement of loan and its utilization for making concerned investment was to be verified. However, there was no such finding recorded by either of the two authorities and examination had been summarily decided. Further there was no finding recorded by either of the two authorities as to claim of assessee regarding investment being made out of assessee's own funds. In the entirety of facts and circumstances of matter relating to source of investment was remanded to AO for verification afresh.
REFERRED :
FAVOUR : Matter remanded.
A.Y. : 2012-13
IN THE ITAT, JAIPUR BENCH
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