Case Law Details
ITO Vs Mohinder Pal Singla (ITAT Chandigarh)
The amount was never debited to the profit and loss account as an expenditure in the year they were received also the amount has not been written off. Said amount not taxable u/s 41(1)
Facts-
During the course of assessment proceedings, AO noted that the assessee had raised unsecured loans amounting to Rs. 2,11,37,381 of which Rs. 1,12,37,381 had been raised from M/s Aadi Krishna Agro Foods, Sunam, and Rs. 99,00,000 had been raised from M/s Track Tech Engineering Ludhiana. In the assessment year 2012-13, these amounts were shown under ‘sundry creditors’, subsequently due to some mistake, these amounts were shown as ‘unsecured loans’. AO issued notice proposing to add back the amount of Rs. 2,11,37,381.
Being aggrieved, assessee preferred appeal before CIT(A), who allowed the appeal on merits. The revenue is now in appeal before Tribunal.
Please become a Premium member. If you are already a Premium member, login here to access the full content.