2017 (9) TMI 1597

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.... Effective Ground of appeal is about treating loan of Rs. 70 lakhs as gift u/s. 56 (2)(vi) of the Act. During the assessment proceedings the AO found that the assessee was one of the allottees in Adarsh Housing Society. He directed her to file complete details of purchase / allotment of the flat along with source of investment. In her explanation the assessee stated that she had obtained loan of Rs. 70 lakhs from Mrs. Neelu T. Kaul (NTK) . The AO recorded her statement u/s. 131 of the Act and directed her to furnish the bank statement of the creditor to prove the genuineness and creditworthiness with a copy of return of income. On perusal of the return of income of NTK, the AO observed that the transaction raised doubt about the genuineness....

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....the husband of the alleged loan creditor was also an allottee on the same floor of the assessee, that she had no capacity to repay the loan, that the intention of the loan creditor was malafide, that the explanation of the assessee was a lineal decedent of loan creditor. Finally, he held that loan of Rs. 70 lakhs received by the assessee from NTK was to be treated as receipt u/s. 56 (2)(vi) of the Act. 3. Aggrieved by the order of the AO, the assessee preferred an appeal before the First Appellate Authority and made detailed submissions. After considering the available material, the FAA reproduced the part of the order of the AO as it was and he dismissed the appeal filed by the assessee . 4. During the course of hearing before us the....