Section 68

This query is : Resolved

CA Namrata Shetty (Querist)
Follow

26 November 2009 Assessee is a partnership firm.Assessee has taken loan from two parties in F.Y. 2000-01.At the time of scrutiny of F.Y. 2007-08, assessee firm could not povide loan confirmations of the respective loans.A.o. added back the loan amount in total income u/s. 68.Following are the queries in relation to the same:-
1. Can the A.O. do so?
2. If yes, then in which year the loan amount will be added?
3. As per sec 68, it will be added in the year in which the amount was credited.Then,in this case it will be in F.Y. 2000-01, which is beyond 6years.Can the A.O. do that?
Please clarify this.

M Prabhakar Menon

M Prabhakar Menon (Expert)
Follow

27 November 2009 If u have not been able to subtantiate your claim then how will the AO accept your view point? U can file an appeal after getting the AO in the meanwhile try to get some paper to back u This is very wide section and most rulings are in favour of the revenue.