2018 (3) TMI 39

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....circumstances of the case and in law, the learned Commissioner (Appeals) erred in deleting the addition made under section 69A of the I.T. Act, 1961 of Rs. 80,71,317 without appreciating the fact that the assessee got its money routed in the form of unsecured loans and after repayment to parties, the money was transferred / withdrawn to the assessee." 2. Brief facts are, the assessee a partnership firm is engaged in the business of builders and developers. For the assessment year under dispute, the assessee filed its return of income on 29th September 2011, declaring total income of Rs. 39,84,250. During the assessment proceeding, the Assessing Officer noticing that in the relevant previous year the assessee has made substantial payments....

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....to parties whose creditworthiness is doubtful cannot be held to be genuine. Accordingly, he added back the amount of Rs. 80,71,317 under section 69A of the Act. Being aggrieved, assessee challenged the addition before the first appellate authority. 3. The learned Commissioner (Appeals) after considering the submissions of the assessee found that the unsecured loans were received by the assessee in financial years 2000-01, 2001-02 and 2002-03. However, in the assessment years relevant to these financial years, the Assessing Officer had not raised any doubt with regard to genuineness of the loan transactions which is evident from the fact that no additions were made under section 68 of the Act in the relevant assessment years. Further, lea....

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....l Representative. As could be seen, the Assessing Officer raised suspicion on the loan repayment by doubting the genuineness of the unsecured loan availed by the assessee against which such loan repayment was made. However, as per the facts on record, unsecured loans which were repaid by the assessee during the year were availed in financial years 2000-01, 2001-02 and 2002-03. In fact, the Assessing Officer himself has accepted that the unsecured loans which were repaid during the year were availed before 1st April 2005. It is also admitted factual position that in the earlier years wherein such unsecured loans were availed by the assessee no doubts were raised by the Assessing Officer and the unsecured loans have been accepted. Further, to....