2019 (11) TMI 1141 - AT - Income Tax

Tribunal allows Revenue's appeal, rejects assessee's cross objection due to delay.

ITO, Ward-1, Tuni Versus Kasireddy Venkateswara Rao, Prop: Balaji Process, Tuni And (Vice-Versa)

ITO, Ward-1, Tuni Versus Kasireddy Venkateswara Rao, Prop: Balaji Process, Tuni And (Vice-Versa) - TMI Issues:Delay in filing appeal, Addition of borrowed amount to total income, Examination of loan creditors, Discharge of burden of proof by assessee, Deletion of addition by CIT(A), Dismissal of cross objection.Delay in filing appeal:The Revenue filed an appeal with a delay of 28 days, seeking condonation of the delay. The Tribunal examined the affidavit and found sufficient cause to condone the delay, thus allowing the appeal to proceed.Addition of borrowed amount to total income:The Assessing Officer added an amount borrowed by the assessee from various individuals to the total income, stating lack of creditworthiness and questioning the genuineness of the transactions. This addition was challenged by the assessee.Examination of loan creditors:The Assessing Officer examined a portion of the loan creditors and noted repayment details, lack of interest received, and the nature of the creditors mainly being from rural areas and unorganized sectors. The officer raised doubts on the genuineness of the transactions.Discharge of burden of proof by assessee:The assessee submitted confirmation letters from all creditors to the CIT(A), who observed that the assessee had fulfilled the burden of proof by providing detailed information about creditors' income sources, family details, and proof of identity. The CIT(A) found no defects in the confirmation letters.Deletion of addition by CIT(A):After considering the remand report and examining the facts, the CIT(A) concluded that the assessee had proven the identity and creditworthiness of the creditors, as well as the genuineness of the transactions. The CIT(A) directed the Assessing Officer to delete the addition made to the total income.Dismissal of cross objection:The cross objection filed by the assessee was dismissed due to a delay of 3 days without a condonation application. Consequently, both the appeal by the Revenue and the cross objection by the assessee were dismissed by the Tribunal.This detailed summary covers the delay in filing the appeal, the addition of borrowed amount to total income, the examination of loan creditors, the burden of proof discharged by the assessee, the deletion of the addition by the CIT(A), and the dismissal of the cross objection.