P & L Account, Balance Sheet, IT Return Bank Statement and Confirmation from lender is enough to disclose the details of unsecured loan

Last updated: 27 December 2011

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
This appeal by assessee is arising out of order of CIT(A), Durgapur in Appeal No.75 / CIT(A)/DGP/2009-10 dated 28.02.2011. Assessment was framed by ITO, Ward-1(3), Durgapur u/s. 143(3) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for Assessment Year 2007-08 vide his order dated 30.12.2009. The only issue in this appeal of assessee is against the order of CIT(A) confirming the addition of Rs. 3 lacs made by Assessing Officer on account of unexplained loan. For this, assessee raised following ground no.1: “For that on the facts and in the circumstances of the case, the Ld. CIT(A) was not justified in confirming the addition of Rs.3,00,000/- made by the A.O. on account of unsecured loan by wrongly treating the same as undisclosed money of the assessee.”

Citation :
Shri Rajeev Kumar Jain (PAN-ACFPJ 9860 Q)(Appellant) Vs Income-tax Officer, Wd-1(3), Durgapur(Respondent)

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH: KOLKATA

[Before Sri Mahavir Singh, JM]

I.T.A No. 688/Kol/2011

Assessment Year: 2007-08

Shri Rajeev Kumar Jain

(PAN-ACFPJ 9860 Q)

(Appellant)

Income-tax Officer, Wd-1(3), Durgapur

(Respondent)

Date of hearing: 08.12.2011

Date of pronouncement: 08.12.2011

For the Appellant: Shri Subhas Agarwal

For the Respondent: Shri R. Gupta

ORDER

This appeal by assessee is arising out of order of CIT(A), Durgapur in Appeal No.75 / CIT(A)/DGP/2009-10 dated 28.02.2011. Assessment was framed by ITO, Ward-1(3), Durgapur u/s. 143(3) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for Assessment Year 2007-08 vide his order dated 30.12.2009.

2. The only issue in this appeal of assessee is against the order of CIT(A) confirming the addition of Rs. 3 lacs made by Assessing Officer on account of unexplained loan. For this, assessee raised following ground no.1:

“For that on the facts and in the circumstances of the case, the Ld. CIT(A) was not justified in confirming the addition of Rs.3,00,000/- made by the A.O. on account of unsecured loan by wrongly treating the same as undisclosed money of the assessee.”

3. I have heard rival submissions and gone through facts and circumstances of the case. At the outset, the Ld. Counsel for the assessee stated that the assessee during the year under consideration took loan of Rs. 3,00,000/- from one Shri Amit Kr. Jain, a close relative, by account payee demand draft. The assessee furnished copies of P&L Account, Balance Sheet, I. T. Returns, bank statement for FY 2006-07 relevant to Assessment Year 2007-08 along with confirmation from Shri Amit Kr. Jain. Before us it was contended that neither the Assessing Officer nor CIT(A) has properly appraised the facts regarding this loan of Rs. 3 lacs as the assessee in his return of income for Assessment Year 2006-07 has disclosed unsecured advances given to various parties which were returned to the assessee in the relevant year cash and deposited the same amount in the bank account amounting to Rs. 1.50 lacs on each of the occasions on 26.08.2006 and 28.08.2006. As these facts were not verified by the lower 2 ITA 688/K/2011 Shri Rajeev Kumar Jain A.Y.07-08authorities, we cannot decide this issue at this level. Hence, we restore the issue to the file of Assessing Officer for fresh verification as per law. Appeal of the assessee is allowed for statistical purposes.

4. In the result, appeal of the assessee is allowed for statistical purposes.

5. Order is pronounced in open court.

Sd/-

(Mahavir Singh)

Judicial Member

Dated : 8th December, 2011

Jd.(Sr.P.S.)

Copy of the order forwarded to:

1.APPELLANT – Shri Rajeev Kumar Jain, Tulsyan Building,

Searsole, Rajbari, Raniganj, Dist. Burdwan, Pin-713 358

2.Respondent, ITO, Ward-1(3), Durgapur

3. The CIT(A), Durgapur