DCIT Vs Harsh Stock Portfolio Pvt. Ltd. (ITAT Jaipur)
ITAT Jaipur held that addition under section 68 of the Income Tax Act towards unsecured loan is untenable since loans accepted were repaid in the same year and all the transactions were carried out through banking channels. Accordingly, appeal of revenue dismissed.
Facts- Revenue has preferred the present appeal mainly contesting that CIT(A) has erred in deleting the addition of Rs. 4,28,00,000/- made by the Assessing Officer on account of unexplained unsecured loan u/s 68 of the Income Tax Act by disregarding the evidence indicating that the loan was channeled through shell companies M/s Wellworth Tradelink Pvt. Ltd. and Desire Vincom Pvt. Ltd. to introduce unaccounted money into the assessee’s books of accounts.
Conclusion- Held that when the loans accepted were repaid in the same year no addition can be made as herein this case assessee showed unsecured loans received during relevant assessment year and AO made addition on ground that assessee failed to discharge onus of liability as laid down under section 68, since amount of loan received by assessee was returned to loan party during year itself and all transactions were carried out through banking channels, impugned addition was to be deleted.
