ITAT Ahmedabad Slams Suspicion: Addition Deleted After Assessee Proves Loan Source with Land Sale Deed and Confirmations

Rakesh Jayantibhai Patel Vs ITO (ITAT Ahmedabad)

Loans from father sisters duly proved with PAN, bank statements, land sale deed confirmations; CIT(A) wrongly sustained addition on mere suspicion

Assessee, engaged in AutoCAD design work, filed his return declaring ₹2,91,400. Based on information that he invested ₹20,00,000 in Cruso Granito Pvt. Ltd., the case was reopened u/s 147. Assessee explained that this investment was funded through savings & unsecured loans from his father and two sisters.

AO partly accepted the explanation but treated ₹11,70,000 as u

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