INCOME TAX ACT, 1961

Section 68

Income from undisclosed sources - Addition under section 68 - Loan amount received by assessee treated as unexplained credit based on statement recorded by Investigation Wing - Assessee filed supportive evidences

AO based on statement recorded by investigation wing in case of alleged entry operators treated loan amount received by assessee as unexplained credit under section 68. Held: All the lender companies were regular income-tax assessees and having PAN as well as their ROC details were brought to the notice of AO and their respective balance sheet showed that all of them had enough creditworthiness to lend the amounts in question to assessee and the assessee had squared up loan transaction with all the lenders and all the payments/TDS were made and payments were made through banking channel. The lenders had replied directly to AO pursuant to the notices issued under section 133(6). In view of all this, loan amount could not be treated as unexplained credit on the sole statement recorded under section 133A since there was no evidentiary value attached to it.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2015-16

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