2021 (1) TMI 665

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.... In the grounds of appeal, the Revenue has taken following grounds. "1. The order of the Ld. CIT(A) is bad in law. 2. The Ld. CIT(A) erred in not appreciating the facts of the case that, the loans taken by the assessee are not genuine. The close relationship/nexus between the assessee and the parties from whom loan has been taken is a mere facade to route unaccounted money. It is a fact that the husband of the assessee and several other family members are engaged in the business of real estate. It is apparent that channeling money through entities is only a means to reintroduce unaccounted money generated through the family business. It is pertinent to note that, the Ld. CIT(A) has upheld that the loans advanced to the ass....

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.... a sundry creditor in her books of accounts and this amount later on has been squared up by treating it as a gift given by her husband. Thus, he presumed that this is some kind of modus operandi carried out by the assessee for treating loans as gift in her books and accordingly, he treated the sums aggregating to Rs. 1,67,40,000/- as gift from unrelated persons and treated as assessee's income u/s.56(vi). 5. Ld. CIT (A) has deleted the said addition after observing and holding as under:- "10.2 Assessment cannot be made on the basis of presumption. Just because the husband has treated his loan as a gift cannot be a reason for drawing a conclusion that other person will also convert their loan to a gift, especially when the books ....