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| The Tax Publishers2021 TaxPub(DT) 0085 (Mum-Trib) INCOME TAX ACT, 1961
Section 68
Where assessee by furnishing relevant documents proved identity of creditors and their creditworthiness as well as genuineness of loan transactions and no adverse inference was drawn by AO on evidences submitted by assessee, there was no justification for making addition under section 68 merely based on search statement given by alleged entry operator especially when searched party had categorically stated that statement under section 132(4) was given out of menyal pressure and in abnormal cirumstances.
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Income from undisclosed sources - Addition under section 68 - Receipt of unsecured loan - Treatment as unexplained based on search statement given by alleged entry operator--Assessee proved identity, creditworthiness and genuineness
AO on the basis of statement recorded during search in case of alleged entry operator treated loan amount received by assessee as unexplained credit and thus made addition under section 68. Held: Assessee by filing PAN card, return of income for the relevant assessment year of the loan creditor, financial statements, scrutiny assessment orders, Bank statements of the concerned loan creditors and that of the assessee to prove that loans were also repaid in subsequent years by account payee cheque/RTGS, etc., proved identity of creditors and their creditworthiness as well as genuineness of loan transactions when no adverse inference was drawn by AO on evidences submitted by assessee, there was no justification for making addition under section 68 because searched party had categorically stated that statement under section 132(4) was given out of menyal pressure and in abnormal cirumstances.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2010-11
IN THE ITAT, MUMBAI BENCH
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