Case Law Details
DCIT Vs Vipul Dilipbhai Shah (ITAT Mumbai)
Conclusion:
When the issue-in-dispute was in respect of the receipt of loan and source of which was already available on record, it would not become undisclosed income in the hands of the assessee, as source of the same, was already within the knowledge of the Income Tax Department.
Held:
AO had recorded in the reasons to belief that cash loan was received by the two firms and name of assessee was appearing in which contact person. AO completed the assessment u/s 147 r.w.s. 143(3) and made an addition of Rs. 3.92 crores as unexplained loan in terms of section 69A. Assessee filed an appeal before CIT(A). CIT(A) deleted the additions. It was concluded that evidently if the loan had been received by the partnership firm/company wherein the assessee was a partner or director, the said loan could not be added in the hands of the assessee. CIT(A) had rightly advised the AO to consider examination of the transactions in the hands of two firm for any suitable action. When the issue-in-dispute was in respect of the receipt of loan and source of which was already available on record, it was not understandable how the same become undisclosed income in the hands of the assessee, as source of the same, was already within the knowledge of the Income Tax Department.
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