DCIT, CORPORATE CIRCLE-1(1), BHUBANESWAR vs. M/S. MAGNUM TELESOFT PVT. LTD., BHUBANESWAR

ITA 82/CTK/2016Status: DisposedITAT Cuttack16 August 2017AY 2010-115 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that Section 68 is not applicable for additions on opening balances of loans received in earlier years. Since the amounts were received prior to the assessment year and the revenue did not controvert the assessee's submissions, the addition was not sustainable.

What were the facts?

The Assessing Officer (AO) made an addition of Rs. 48,07,984/- under Section 68 on account of unsecured loans, as the assessee could not provide satisfactory explanations or confirmations from creditors. The assessee contended that the loans were old and received prior to FY 2006-07.

What were the issues?

Whether the addition of unsecured loans as income under Section 68 is justified when the loans represent opening balances from prior years and the assessee provides explanations that the transactions occurred long before the assessment year.

Which sections of the Income-tax Act were involved?

Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK

Before: SHRI N.S.SAINI, AM & SHRI PAVAN KUMAR GADALE, JM

Hearing: 10/08/2017Pronounced: 16/08/2017

Per Shri Pavan Kumar Gadale, JM: The revenue has filed an appeal against the order of CIT(A)-1, Bhubaneswar, passed in ITAppeal No.0542/2014-15, dated 3.12.2015, u/s.143(3) of the Income Tax Act, wherein the revenue has raised the following grounds :- 1 On the facts and in the circumstances of the case, the Ld.CIT(A) is not justified in law as well as on facts in deleting the addition of Rs.48,07,984/- made by the AO u/s.68 on account of unsecured loan.

2.

On the facts and in the circumstance

The order continues below.

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