KIRAN KUMAR METAPALLY,HYDERABAD vs. INCOME TAX OFFICER, WARD-9(3), HYDERABAD
What did the Tribunal hold?
The Tribunal allowed the assessee to present additional evidence, including bank statements, to the Assessing Officer. The matter was remitted back for fresh examination of the loan transaction's genuineness and creditworthiness.
What were the facts?
The assessee received Rs. 4,50,000 from Smt. T. Laxmi, which the Assessing Officer added to income for failure to prove the creditor's creditworthiness. The CIT(A) confirmed this.
What were the issues?
Whether the addition made by the AO on account of unexplained loan was justified. Whether the assessee was given sufficient opportunity to prove the creditworthiness of the creditor.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, HYDERABAD “SMC” BENCH, HYDERABAD
Before: SHRI V. DURGA RAO, HON’BLE
This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals)-8, Hyderabad, dated 05/03/2019 for the Assessment Year 2015-16. 2. The only issue involved in this appeal relates to addition of Rs. 4,50,000/- received by the assessee from Smt. T. Laxmi. The Assessing Officer has made the addition on the ground that the assessee failed to prove the creditworthiness of the loan creditor Smt. T. Laxmi.
On appeal, ld. CIT(A) confirmed the order of the Assessing Officer on the ground that the assessee has failed to substantiate the creditworthiness of the loan creditor.
On being aggrieved, assessee is in appeal before this Tribunal. 5. The case of the assessee is that he has received an amount of Rs. 4.50 lakhs from Smt. T. Laxmi through banking channel, copies of the bank statements which were not filed before the lower authorities may be permitted to file before this Tribunal and for that purpose he filed a petition for admission of additional evidence. 6. I have considered the entire facts and circumstances of the case and find that assessee has received an amount of Rs. 4.50 lakhs from Smt. T. Laxmi through banking channel, however, Assessing Officer as well as ld. CIT(A) not accepted the explanation of the assessee on the ground that assessee has failed to prove the creditworthiness of the creditor and genuineness of the transaction. In view of the above circumstances, I find that one more opportunity should be given to the assessee to substantiate his case before the Assessing Officer by filing the relevant details. Accordingly, I set aside the order passed by the ld. CIT(A) and remit the matter back to the file of the Assessing Officer directing him to examine the details in respect of amount borrowed by the assessee from Smt. T. Laxmi and pass necessary orders denovo in accordance with law. I also direct the assessee to produce the relevant details before the Assessing Officer on the date is given for hearing without fail. Thus, this appeal filed by the assessee is allowed for statistical purpose. 7. In the result, appeal filed by the assessee is allowed for statistical purpose. Order Pronounced on this 22nd day of Jan., 2020.
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