LOTUS INFRAREALTY LIMITED,BHOPAL vs. ACIT(CENTRAL), GWALIOR

In the assessment order, Ld. AO made quantum addition of Rs.172.76 Lacs which represent unsecured loans as obtained by the assessee from various parties since the assessee failed to satisfy the requirements of Sec. 68. During appellate proceedings, the assessee furnished additional evidences to substantiate these loans which were subjected to remand proceedings. The assessee furnished PAN details of only 31 parties out of 51 parties and also filed confirmation of 37 parties which were stated to be incomplete in important aspects. The income tax returns were filed only for 7 parties. Consequently, Ld. CIT(A) confirmed addition of Rs.108.50 Lacs with respect to 19 individuals as tabulated on Page-18 of the assessment order and deleted the remaining addition. Aggrieved, the assessee is in further appeal before us.

We find that the addition of unsecured loans has been confirmed with respect to 19 individual parties for which the assessee had furnished PAN details. Considering this fact and keeping in mind the principles of natural justice, we deem it fit to provide another opportunity to the assessee to substantiate its case before Ld. CIT(A). Accordingly, this impugned issue, with respect to confirmation of addition of Rs.108.50 Lacs stand restored back to the file of Ld. CIT(A) with a direction to the assessee to substantiate the same.

The appeal stand allowed for statistical purposes. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963.