Query related to loan taken and squarred up during the year
This query is : Resolved
01 November 2011
Q. If Mr. X has taken the loan from Y and opening Balance was out standing on 01.04.2008 Say Rs. 2 Lakhs and Repayment of loans has also made to Y during the Financial year 2008-09 and balance of loan is nil. Mr . X case was selected in Scrutiny for the F.Y. 2008 -09 ( Assessment Year 2009-10) and ITO Was ask to Mr. X regarding confirmation of loan required from Y and Y is not traceable if the confirmation not provided by X to the ITO in that case ITO Can add the loan amount in the Income of X
1) My querry is that in the absence of Confirmation ITO can add the loan amount to Mr. X Income on what ground?
2) He can not add the loan amount to Mr X income. Please advice to me.
1) My querry is that in the absence of Confirmation ITO can add the loan amount to Mr. X Income on what ground?
2) He can not add the loan amount to Mr X income. Please advice to me.
01 November 2011
Section 68 of the Income tax Act,1961 attracts. However, a plea can be sought for on the line that it is an opening balance and no amount has been credited in books during the year under scrutiny.
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