Kedar Das Dargar Huf vs. ACIT Circle-1

Parties Involved

Facts Summary

The assessee, a Hindu Undivided Family (HUF), filed its return of income for the assessment year 2020-21, declaring a total income of Rs. 17,33,760/-. The Assessing Officer reopened the assessment under section 147 of the Income-tax Act, 1961, finding that income to the tune of Rs.30,92,901/- had escaped assessment. The Assessing Officer called upon the assessee to furnish details of interest paid amounting to Rs.30,92,901/-. The assessee furnished details of five loan creditors but could not provide details for three parties. The Assessing Officer treated the repayment of principal amount and interest on the loan amount as unexplained expenditure under section 69C of the Act and added the same to the income of the assessee. The assessee contested this addition by filing an appeal before the First Appellate Authority, but the addition was confirmed.…

Legal Issues

• 1. Whether the addition made by the Assessing Officer under section 69C of the Income-tax Act, 1961 is sustainable?

Judgment Outcome

Decided in favour of Assessee.

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