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| The Tax Publishers2020 TaxPub(DT) 1924 (Jp-Trib) INCOME TAX ACT, 1961
Section 68
Where AO made addition on allegation that assessee-firm repaid loan to a dead person, merely because husband of lender did not inform death of her wife to bankers, the entire transaction of return of loan by assessee firm to the husband, who was joint signatory in bank account could not be held to be non-genuine.
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Income from undisclosed sources - Repayment of loan to dead person - Husband of lender did not inform death to bankers and he was also joint signatory in bank account -
AO added a sum of Rs. 25,00,000 holding that assessee firm could not return loan to a dead person and a dead person could not give loan to partners. CIT(A) also confirmed order of AO. Held: As gone through all chain of transactions which were through account payee cheques. All bank statements were on record. Bank account of Late lender was operated jointly by her husband. Merely because, husband of lender did not inform death of her wife to bankers, the entire transaction of return of loan by assessee firm to husband, who was joint signatory in bank account could not be held to be non-genuine.
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
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