2018 (5) TMI 1092

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.... that finding that the loan transaction itself was not genuine, came to be reversed by the Tribunal for the block period of assessment? 2. Brief facts are as under. The appeal concerns the assessment year 2010-2011. For such year, the assessee had filed the return of income on 27.9.2010 declaring total income of Rs. 3,62,804/. The Assessing Officer took the return in scrutiny and passed the order of assessment under section 143(3) of the Act on 28.12.2011 determining the total income of assessee at Rs. 73,96,722/. This included disallowance of interest payment of Rs. 4,97,915/, unexplained cash credit of Rs. 50,86,007/and GP addition of Rs. 14,49,996/. Assessing Officer made this disallowance on the ground that in his opinion loan transact....

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....ls), the Tribunal reversed the view of the revenue authorities on the ground that the legality of the loan transactions was decided against the Revenue in the earlier assessment years. Thereupon the Revenue is in appeal before us. 6. Learned counsel Shri Varun Patel for the department contended that the Tribunal committed a serious error in ignoring the findings arrived at by the Assessing Officer and CIT(Appeals) which related to the present assessment year 2010-2011. The declaration by the Tribunal with respect to the legality of the loan transaction, for the earlier assessment years was based on the fact that no material was found during the search on the basis of which such addition could be made. This would vitiate the findings arrive....