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| The Tax Publishers2020 TaxPub(DT) 1955 (Del-HC) INCOME TAX ACT, 1961
Section 226(3)
As apparent, assessee failed to discharge onus regarding establishing identity and creditworthienss of lender and genuineness of transaction of unsecured loans.Lender company having no sufficient internal resources to provide huge quantum of unsecured loans to assessee was used as conduit in availing unsecured loans covered under section 68 and consequently writ petition seeking quashing of Order passed by Pr.CIT and Order, passed by Dy.CIT and to further direct him to forebear from taking any coercive steps/actions aginst assessee for recovery of tax demand arising out of addition made under section 68 was dismissed as no prima facie case was not made.
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Recovery - Rejection of stay application - No prima facie case made out by assessee -
AO made addition under section 68 on account of receipt of unsecured loan. This gave rise to tax demand. Assessee by way of writ petition sought quashing of Order passed by Pr.CIT and Order, passed by Dy.CIT and to further direct him to forebear from taking any coercive steps/actions aginst assessee for recovery of tax and also for removing lien marks on bank accounts of assessee.Held: As apparent, assessee failed to discharge onus regarding establishing identity and creditworthienss of lender and genuineness of transaction of unsecured loans.Lender company having no sufficient internal resources to provide huge quantum of unsecured loans to assessee was used as conduit in availing unsecured loans covered under section 68 and consequently writ petition and application being bereft of merits were dismissed as no prima facie case was not made out by assessee.
REFERRED :
FAVOUR : Against the assessee.
A.Y. :
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