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| The Tax Publishers2019 TaxPub(DT) 6369 (Ahd-Trib) INCOME TAX ACT, 1961
Section 68
Assessee having furnished evidences such as PAN and copies of bank statements of lenders had proved identity and creditworthiness of lenders and genuineness of impugned loan transactions therefore, AO was not justified in making addition under section 68.
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Income from undisclosed sources - Addition under section 68 - Receipt of loan - Confirmation letters given by lenders being hand-written by the single person--Assessee having proved identity, creditworthiness and genuineness
Assessee-firm received loans from certain parties. AO treated the same as unexplained credit under section 68 on the ground of confirmation letters given by lenders being hand-written by the single person. Held: Assessee having furnished evidences such as PAN and copies of bank statements of lenders had proved identity and creditworthiness of lenders and genuineness of impugned loan transactions, therefore, AO was not justified in making addition under section 68.
Supported:CIT v. Precision Finance (P) Ltd. (1994) 208 ITR 465 : 1994 TaxPub(DT) 368 (Cal-HC), CIT v. Green Infra Ltd. (2017) 78 Taxmann.com 340 (Bom) : 2017 TaxPub(DT) 640 (Bom-HC) and Dy. CIT v. Rohini Builders (2002) 256 ITR 360 (Guj) : 2002 TaxPub(DT) 305 (Guj-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2004-05
INCOME TAX ACT, 1961
Section 28
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