https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=270154 https://www.taxtmi.com/caselaws?id=270154 Unaccounted loan - Assessing Officer found that the gift portion of Rs. 5 lakhs is a separate one and it cannot be linked to the loan portion of Rs. 7 lakhs which was said to be given during the assessment year 2007-08 - Held that:- The fact remains that the total sum of money given by the assessee to his son is only Rs. 12 lakhs. Rs. 5 lakhs was given in the assessment year 2006-07 and another sum of Rs. 7 lakhs was given in assessment year 2007-08. The Assessing Officer appears to have accepted the gift of Rs. 5 lakhs. However, he confuses himself that the loan of Rs. 5 lakhs is a separate one and he made an addition with regard to loan and not with regard to gift. The fact remains is that for the assessment year 2006-07, what was given by the assessee is only a sum of Rs. 5 lakhs either as loan or gift to his son Shri R. Ganesan. Therefore, there is no necessity for the Assessing Officer to take the transaction as two independent transactions. This Tribunal is of the considered opinion that the transaction of Rs. 5 lakhs is only one transaction. Therefore, the Assessing Officer may not be justified in treating the transaction between the assessee and his son in the assessment year 2006-07 as two transactions and making an addition of Rs. 5 lakhs. Since the transaction is only one transaction, this Tribunal is of the considered opinion that the addition made by the Assessing Officer to the extent of Rs. 5 lakhs is not justified. Accordingly, the orders of the lower authorities are set aside and the addition made by the Assessing Officer stands deleted. Coming to the assessment year 2007-08, reading of the assessment order clearly shows that the assessee and his son categorically admitted that payment and receipt of loan was to the extent of Rs. 7 lakhs. The Assessing Officer appears to have presumed that the sum of Rs. 7 lakhs would not have been repaid during the year under consideration, since neither the assessee nor the assessee’s son claimed before him that the same was repaid. This Tribunal is of the considered opinion that when the loan transaction was confirmed and they claimed that it is not reflected in the statement because the transaction was settled during the same financial year, the presumption of the Assessing Officer was that the loan transaction was not settled during the year under consideration. Therefore, the presumption of the Assessing Officer that there was no claim either by the assessee or by his son that the loan was repaid during the year under consideration is beyond imagination. This Tribunal is of the considered opinion that there is no justification in making addition of Rs. 7 lakhs. Accordingly, the orders of the lower authorities are set aside and the Assessing Officer is directed to delete the addition of Rs. 7 lakhs made for the assessment year 2007-08. - Decided in favour of assessee. Case-Laws Income Tax Fri, 04 Sep 2015 00:00:00 +0530