The Tax Publishers2020 TaxPub(DT) 5042 (Mum-Trib)

INCOME TAX ACT, 1961

Section 68

Assessee by furnishing copies of loan confirmations, ITR acknowledgement, income-tax computation and bank statements. Addresses and PAN No. of companies/entities from whom assessee had taken loans in question, proved identity and creditworthiness of the lenders and genuineness of transactions, therefore, AO was not justified in doubting genuineness of loan transactions so to make addition under section 68.

Income from undisclosed sources - Addition under section 68 - Receipt of unsecured loans - Assessee proved genuineness of loan transactions

AO treated loan amount received by assessee as unexplained credit under section 68 on the ground that had assessee failed to establish genuineness of loan transactions. Held: Assessee by furnishing copies of loan confirmations, ITR acknowledgement, income-tax computation and bank statements. Addresses and PAN No. of companies/entities from whom, assessee had taken loans in question proved identity and creditworthiness of the lenders and genuineness of transactions. There was no evidence on record to conclude that amounts of loans in question actually belonged to assessee and were introduced in books of account in the name of creditors. Accordingly, AO was not justified in making addition of loan amount under section 68.

Relied:CIT v. Orissa Corporation (P) Ltd. (1986) 159 ITR 78 (SC) : 1986 TaxPub(DT) 1425 (SC) and CIT v. Jauharimal Goel (2005) 147 Taxman 448 (All.) : 2008 TaxPub(DT) 117 (All-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2013-14



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