Unsecured Loans Examined in Earlier Assessments Cannot Be Re-added on Same Material

Siddha Construction Vs DCIT (ITAT Surat) The Surat Bench of the ITAT allowed the assessee’s appeal for AY 2012-13 and deleted the addition of ₹34.50 lakh made on account of unsecured loans. The Tribunal noted that the impugned loans had already been thoroughly examined and accepted during the original assessment under section 143(3), based on confirmations and income-tax returns of the lenders. Subsequently, even in reassessment proceedings, the loans were accepted and only a disallowance under section 40(a)(ia) for non-deduction of TDS on interest was made. The Tribunal held that reopenin...