JASJIWAN KAUR Vs. ITO

JUDGEMENT

(1.) This appeal by the assessee pertains to the assessment year 2005-2006 and it arises out of ITA 283/Del/2009 decided on 06.08.2010 by the Income Tax Appellate Tribunal. The questions which have been framed for the consideration of this Court are as under:-

(2.) During the course of arguments, the learned counsel for the appellant drew our attention to the fact that the appellant had mentioned in paragraph 3 of this appeal itself that the amount that was taken as loan had, in fact, been repaid. Paragraph 3 of the appeal reads as under:-

(3.) We find from the factual position with regard to the addition of Rs. 8,28,375/- made under Section 56(2)(v) of the Income Tax Act, 1961 (hereinafter referred to as the said Act ) that, initially, the Assessing Officer had made an addition of Rs. 27,20,375/- under the head of income from other sources with regard to the alleged loans taken by the assessee. At that point of time, the Assessing Officer had not required the assessee to produce any evidence with regard to repayment of the alleged loan amount. It is the case of the learned counsel for the appellant/ assessee before us that the loan amount had been repaid prior to the passing of the assessment order. Since the Assessing Officer had not required the assessee to place on record the evidence in respect thereof, no such evidence had been produced before the Assessing Officer. After the assessment order was passed, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals), who substantially accepted the plea of the assessee and deleted an amount of Rs. 26,40,375/- from the said amount of Rs. 27,20,375/- leaving an amount of Rs. 80,000/- as being the amount of addition sustained under the head of income from other sources . Since the amount was small, the assessee did not prefer any appeal before the Income Tax Appellate Tribunal in respect of the order passed by the Commissioner of Income Tax (Appeals). However, the revenue filed an appeal before the Income Tax Appellate Tribunal. The revenue s appeal was partially allowed by enhancing the addition of Rs. 80,000/- to Rs. 9,48,375/-.