Opportunity to furnish unsecured-loan confirmations is required before reassessment initiation; proceedings require fresh consideration after taxpayer...
Under-reporting on a first reassessment return attracts penalty, while enhanced misreporting penalty requires proof of a statutory misreporting catego...
The case deals with addition u/s 68 for unexplained cash credit from alleged bogus unsecured loans. The Assessing Officer (AO) added the peak credit without establishing genuineness or creditworthiness. However, the assessee provided substantial evidence of identity, genuineness, and creditworthiness of the loan creditors, including confirmations, ID proofs, bank statements, and tax returns. Repayment in subsequent years supported transaction genuineness. The AO's conclusions relied on assumptions without contradicting evidence. Citing legal precedent, the CIT(A) rightly noted lack of adverse comments in the remand report. The ITAT upheld the CIT(A)'s decision, dismissing the Revenue's appeal.
The case deals with addition u/s 68 for unexplained cash credit from alleged bogus unsecured loans. The Assessing Officer (AO) added the peak credit without establishing genuineness or creditworthiness. However, the assessee provided substantial evidence of identity, genuineness, and creditworthiness of the loan creditors, including confirmations, ID proofs, bank statements, and tax returns. Repayment in subsequent years supported transaction genuineness. The AO's conclusions relied on assumptions without contradicting evidence. Citing legal precedent, the CIT(A) rightly noted lack of adverse comments in the remand report. The ITAT upheld the CIT(A)'s decision, dismissing the Revenue's appeal.
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