Please someone provide me some case laws for following case in favour of assessee:
Assessee had taken a Interest free CASH loan above Rs. 20000 from his relatives who are farmers by occupation and do not have any bank account.
ITO taken this loan as income and charged tax on it.
AO has to issue summons u/s 131(1) before disallowance, and assesse has to provide complete postal / contact details of the loan giving person, and AO may ask for reasons and compliance reg source and genuineness of the transaction.
in case of non compliance / non co-operation, the AO has right to disallow.
Agree wid U S SHARMA bt also section 269SS/269T will come in to play......for which penalty is amt of loan accepted (for accepting a loan above 20000 rs in cash............)
You may refer the case law
"BALAJI TRADERS vs DCIT [2001] 73 TTJ 246 (ITAT, PUNE)/ 78 ITD 368"
Under this case, there were many grounds which were in favour of assessee, "not having a bank account" is one of them.
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