The Tax Publishers2020 TaxPub(DT) 5500 (Ahd-Trib)

INCOME TAX ACT, 1961

Section 68

Amount received by assessee from the lender was through banking channel and transactions were reflected in bank account of assessee as well as the lender. The source of money received by lender is also not in challenge. Lender as well as lender of the lender were both limited companies and tax assessees in the record of department. In absence of any evidence against assessee qua the lender of the lender, onus on assessee to establish genuineness of loan transactions stood discharged and, therefore, AO was not justified in making addition under section 68 doubting genuineness of loan transaction.

Income from undisclosed sources - Addition under section 68 - Receipt of unsecured loan -

Assessee received unsecured loan from certain party. AO required assessee to substantiate loan transaction. Assessee submitted ledger copy of unsecured loan and confirmation. However, confirmation was not signed by lender concerned. Accordingly, AO doubted genuineness of loan transaction and thus made addition of loan amount under section 68. Held: Amount received by assessee from the lender was through banking channel and transactions were reflected in bank account of assessee as well as the lender. The source of money received by lender is also not in challenge. Lender as well as lender of the lender were both limited companies and tax assessees in the record of department. In absence of any evidence against assessee qua the lender of the lender, onus on assessee to establish genuineness of loan transactions stood discharged and, therefore, AO was not justified in making addition under section 68.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2012-13


INCOME TAX ACT, 1961

Section 69

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