Tribunal grants appeal for loan verification, remands case for reassessment.

The tribunal allowed the appeal for statistical purposes, directing further verification of the loan confirmation and related evidence by the Assessing Officer. The case was remanded to the AO for denovo assessment after granting the assessee an opportunity to be heard. The tribunal emphasized the need for a thorough examination of the evidence before making a final determination on the addition of the loan under section 68.

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Issues:
Confirmation of addition of loan under section 68 due to unserved notice u/s 133(6) - genuineness of transaction in question.

Detailed Analysis:

1. Confirmation of Addition of Loan under Section 68:
- The appeal was against the confirmation of addition of Rs. 25 lakhs by the ld.CIT(A) as made by the AO u/s 68 on account of a loan received from M/s Nicco Securities Private Limited. The issue was the unserved notice u/s 133(6) and the genuineness of the transaction.
- The AO noted that the assessee availed loans from various parties, and notices u/s 133(6) were issued to verify the genuineness. The notice to M/s Nicco Securities Ltd was returned unserved. The assessee was asked to prove the identity, creditworthiness, and genuineness of the transaction.
- The AO added the amount to the total income of the assessee u/s 68 as the source of the loan could not be proven. The ld.CIT(A) dismissed the appeal, stating that the genuineness of the transaction was not proved with necessary documentary evidence.
- The ld.AR argued that all evidences to prove the genuineness of the transaction were provided, including confirmation from the lender. The loan was converted into share capital in a subsequent assessment year.
- The ld.DR contended that despite sufficient opportunities, the genuineness of the transaction could not be proved satisfactorily, even with the presence of the Director of the Company and other documentary evidence.

2. Decision and Analysis:
- The tribunal observed that the assessee had filed confirmation of the loan, signed by the AR of the lender company, along with PAN and other evidence. The copy of the ledger account of the assessee in the books of the lender company was also submitted.
- The tribunal decided that further verification of these evidences was necessary by the AO. Therefore, the matter was restored to the file of the AO for examination of all evidence and framing the assessment denovo after providing necessary opportunity of being heard to the assessee.
- The appeal of the assessee was allowed for statistical purposes, and the order was pronounced in the open court on 25th Oct, 2017.

This detailed analysis covers the issues involved in the legal judgment, focusing on the confirmation of the addition of a loan under section 68 due to an unserved notice u/s 133(6) and the genuineness of the transaction, providing a comprehensive understanding of the case and the tribunal's decision.

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