Water Works Engineering Vs ITO (ITAT Chennai)
Unsecured Loans & Advances- Absence of Confirmation Not Fatal – ITAT Remands Matter for Fresh Verification; ITAT Chennai: Natural Justice Requires Consideration of New Evidence in Loan Dispute
Assessee, Water Works Engineering, had taken unsecured loans of ₹18.15 lakh & also received advance of ₹90.41 lakh from M/s SRM Enterprises during AY 2018-19. In the absence of confirmations & supporting documents, AO added both amounts as income, treating them as unexplained u/s 68. CIT(A) upheld the additions, holding that the ledger printout produced was unsigned, unstamped & without PAN, & thus not valid evidence.
Before Tribunal, assessee furnished fresh evidences including confirmation letter from SRM Enterprises, ledger copies & HDFC bank statements. It was argued that mere absence of confirmations at assessment stage does not render transactions non-genuine if otherwise supported.
Tribunal held that the additional evidences went to the root of the matter & were necessary for substantial justice. Accordingly, it admitted the documents & remanded the matter back to AO for de novo assessment, directing him to re-examine unsecured loans & advance receipts in light of fresh evidences, after giving proper opportunity of hearing to assessee.
Thus, the appeal was allowed for statistical purposes.
