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Income Tax Appellate Tribunal, DELHI BENCH “SMC-I”: NEW DELHI
Before: SHRI P.K.BANSAL
Assessee by : Shri Rajesh Jain, FCA Department by : Shri Sandeep Kumar Mishra, Sr. DR Date of Hearing 12/07/2016 Date of pronouncement 12/07/2016 O R D E R
This appeal has been filed by the assessee against the order of the Ld. CIT(A) dated 29.10.2014.
The only issue involved in this appeal by the assesee relates to the sustenance of the addition of Rs. 6,31,866/- made by the AO u/s 69C of the Income Tax Act by invoking the provision of section 154 of the Income Tax Act.
I have heard the rival submissions and carefully considered the same alongwith the order of the tax authorities below . I noted that in this case the AO made the addition of Rs. 6,31,866/- while taking action u/s 154 of the Income Tax Act on the basis of the schedule of the unsecured loan filed by the assesee . The AO on the basis of the schedule of the unsecured loan was of the view that the assesee has shown unsecured loan as on 31st March, 2005 at Rs. 2,49,27,180/- while opening balance as on 1st April, 2005 was taken at Rs. 2,42,95,314/-.
Therefore, the AO not being satisfied with the explanation of the assesee made the addition u/s 69C of the difference amount of Rs. 6,31,866/- which was confirmed by the Ld. CIT(A). I noted from page 8 and 9 of the paper book which were filed before me that the assessee has submitted the details of the unsecured loan as on 31.3.2006 and as on 31.3.2005. As on 31.3.2005 in the detail the assessee has not included two items of Rs. 5,50,000/-and Rs. 81,966/- relating to Sunita Jain and Vaibhav Jain and the assessee has made the re-payment during the impugned assessment year which is apparent from page 9 of the paper book. Once the payment of these parties have been made during the year the assessee therefore in the details of the unsecured loan as on 31.3.2006 has not taken unsecured loan which were squared up during the assessment year 2005-06. The AO in my opinion could not 2 appreciate the facts of the case properly. In view of this fact I set aside the order of the Ld. CIT(A) as this is not a mistake apparent on record and delete the addition.
In the result, appeal filed by the assessee is allowed.
Order pronounced in the open court on 12/07/2016.