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2015 (5) TMI 579 - ITAT LUCKNOWUnexplained loans - non production of creditors after lapse of more than 10 years - Held that:- Despite opportunities afforded to the assessee, no evidence was placed. Initially, the assessee sought adjournment before the Assessing Officer on the ground that the two persons have gone out of station and they would be back in the first week of November. The request for adjournment was acceded to by the Assessing Officer, but despite affording opportunities, the assessee could not produce these creditors. As per direction of the Tribunal, the assessee was required to prove the capacity of the creditors to advance money, but the assessee could not produce the bank statement or other evidence to prove the financial creditworthiness. Since the assessee could not discharge its onus to prove all the ingredients i.e. identity of the creditors and capacity of the creditors to advance the money and genuineness of the transaction, the Assessing Officer has treated the deposit as unexplained and made addition of the same. Also before the ld. CIT(A), the assessee could not improve his case and for want of creditworthiness of the depositors, the addition was confirmed by the ld. CIT(A). - Decided against assessee.
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