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| The Tax Publishers2020 TaxPub(DT) 4298 (Mum-Trib) INCOME TAX ACT, 1961
Section 68
Assessee by furnishing confirmation letters, bank statements, financial statements of entities from whom, assessee had obtained loans in question, etc., duly proved identity and creditworthiness of lender and genuineness of loan transactions, therefore, loan amount could not be treated as unexplained credit under section 68.
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Income from undisclosed sources - Addition under section 68 - Receipt of unsecured loan - Assessee proved identity, creditworthiness and genuineness
AO based on information emanated from investigation wing, treated unsecured loan received by assessee-company as unexplained credit and made addition under section 68. Held: Assessee by furnishing confirmation letters, bank statements, financial statements of entities from whom, assessee had obtained loans in question, etc. There was no evidence on record to show that assessee had paid cash to loan creditors in lieu of loan received from them. It is an admitted fact that unsecured loans under consideration had been repaid over a period of time and assessee paid interest and deducted TDS thereon as per provisions of the Act. AO had not made any enquiry from entities who have provided the loan, not even notices under section 133(6) were issued. Accordingly, loan amount could not be treated as unexplained credit under section 68.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2012-13
IN THE ITAT, MUMBAI BENCH
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