Mere book entries & AIR data insufficient for additions: ITAT Mumbai

ITO Vs Farhat Yusuf Shaikh (ITAT Mumbai) Assessee is an individual whose case was selected for limited scrutiny to examine certain issues. Noticing an increase in closing balance of unsecured loans as compared to previous year, AO made additions u/s 68 by invoking provision of sec. 144. On appeal, assessee contended that he had entered into an agreement for purchase of properties & therefore, increase in unsecured loans was not on account of any fresh loan taken but was a mere book entry on account of purchase consideration shown in the asset side of the balance sheet. Convinced with the s...