| The Tax Publishers2020 TaxPub(DT) 2981 (Mum-Trib) INCOME TAX ACT, 1961
Section 68
Where assessee, by furnishing primary evidences, relating to unsecured loans including name and address, and PAN numbers bank statements and confirmation letters of creditors details of interest payment made after deducting applicable TDS discharged primary onus to prove identity and creditworthiness of creditors, addition made under section 68, and that too, without conducting any independent enquiries to ascertain nature of concerned transactions, could not be sustained merely for the reason that parties had not responded to notices issued by AO under section 133(6).
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Income from undisclosed sources - Addition under section 68 - Receipt of unsecured loan - No response by lenders to section 133(6) notices--Assessee proved identity, creditworthiness and genuineness
Assessee had taken unsecured loans from four parties. AO in order to verify genuineness of loans transactions, sought information under section 133(6) from creditors. As parties did not respond to section 133(6) notices, AO treated loan amount as unexplained credit under section 68. Held: Assessee by furnishing primary evidences relating to unsecured loans including name and address, and PAN numbers bank statements and confirmation letters of creditors details of interest payment made after deducting applicable TDS discharged primary onus to prove identity and creditworthiness of creditors and therefore, addition made under section 68, and that too, without conducting any independent enquiries to ascertain nature of concerned transactions, could not be sustained merely for the reason that parties had not responded to notices issued by AO under section 133(6).
Followed:CIT v. Lovely Exports Pvt. Ltd. (2008) 2016 CTR 195 (SC) : 2009 TaxPub(DT) 261 (SC), Sangvi Realtors Pvt. Ltd. v. Dy. CIT (2017) 60 ITR (Trib) 150 (Mum) : 2017 TaxPub(DT) 5018 (Mum-Trib), Asstt. CIT v. Sreedham Builders [ITA No. 5589/Mum/2017] : (2018) 53 CCH 212 (Mum-Trib.) : 2018 TaxPub(DT) 3839 (Mum-Trib) and Dy.CIT v. Bairagra Builders Pvt. Ltd. (2017) 51 CCH 107 (Mum).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2016-17
IN THE ITAT, MUMBAI BENCH
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