Trilok Chand Jaiswal Vs ITO (ITAT Raipur)
The Income Tax Appellate Tribunal (ITAT), Raipur, allowed the assessee’s appeal against the order of the CIT(A)/NFAC for Assessment Year 2013-14 concerning an addition made under Section 68 of the Income Tax Act, 1961.
The assessee submitted that he had obtained loans amounting to ₹37 lakh from his relatives. According to the assessee, the identity, creditworthiness and genuineness of the loan transactions were established by furnishing Aadhaar and PAN of the lenders, loan confirmation statements, bank statements, computation of income, balance sheets and income tax return acknowledgements for the preceding three years. The assessee further stated that although the Department examined the loans advanced by him to M/s. Vandana Trailers and Body MFG Pvt. Ltd. during the relevant financial year, it accepted loans of ₹7 lakh but added ₹30 lakh out of the ₹37 lakh borrowed from relatives.
The Revenue relied on the orders of the lower authorities.
The Tribunal observed that the Assessing Officer had made the addition merely on suspicion without bringing any concrete evidence against the assessee. It noted that neither the Assessing Officer nor the CIT(A)/NFAC had assigned any specific reason for the addition of ₹30 lakh despite the assessee furnishing loan confirmations, bank statements, income tax returns and account statements of the lenders. According to the Tribunal, the Department had not conducted any specific enquiry or verification regarding the evidence furnished by the assessee.
