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The Tax PublishersITA No. 6301/Mum/2017
2019 TaxPub(DT) 8382 (Mum-Trib)INCOME TAX ACT, 1961
Section 68
Assessee in respect of loans taken had filed evidence such loan confirmations, bank statement of Lender parties, ledger copy, etc. As per from balance sheet of these loan parties it was clear that they had adequate creditworthiness as their share capital and reserves were much more out of which loans were given to assessee-company. Also loans during the year were repaid in next financial year. Accordingly, identity and creditworthiness of lenders and genuineness of loan transaction had been proved by assessee and onus cast upon assessee stood discharged and AO was not, therefore, justified in taxing loan amount under section 68.
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Income from undisclosed sources - Addition under section 68 - Receipt of unsecured loan - Identity, creditworthiness and genuineness proved by assessee
AO based on information emanated from investigation wing treated unsecured loan received by assessee as unexplained credit under section 68. Held: Assessee in respect of loans taken had filed evidence such loan confirmations, bank statement of Lender parties, ledger copy, etc. As per from balance sheet of these loan parties it was clear that they had adequate creditworthiness as their share capital and reserves were much more out of which loans were given to assessee-company. Also loans during the year were repaid in next financial year. Accordingly, identity and creditworthiness of lenders and genuineness of loan transaction had been proved by assessee and onus cast upon assessee stood discharged and AO was not, therefore, justified in taxing loan amount under section 68.
Relied:Skylark Build [ITA No. 616 of 2016, dt. 24-10-2018] : 2019 TaxPub(DT) 0565 (Bom-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2014-15
IN THE ITAT, MUMBAI BENCH
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