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2016 (5) TMI 1471 - ITAT MUMBAIAddition on account of unsecured loans u/s 68 - assessee was unable to substantiate the genuineness of the transaction and unable to prove the capacity and credit worthiness of the lenders - Held that:- Most of the amount has come from the family members/group entities, which are regularly assessed to tax with the same AO and these matters could have been examined and the other allegations of the AO has also been turned down by the CIT(A) on cogent reasons as discussed. Once that is so, then there is no need for making such a wild allegation that the capacity of the lenders has not been proved. Other important fact emerging from records as noted by the CIT(A) that the amount of ₹ 79,90,000/- received from the 12 parties consisting of the family members/group entities have been repaid back in the impugned year itself and on this aspect as pointed out by the ld. Counsel, ITAT in the case of assessee’s brother Haresh Majethia has deleted the addition on the ground that if the receipts and repayment of loan is corroborated by the ledger account and bank entries. Here also exactly the same fact is permeating, therefore, following the Tribunal order this amount of ₹ 79,90,000 has to be deleted. On other amount of ₹ 61.50 lakhs also, it is undisputed fact that it has been received from one proprietorship concern of the assessee to another, therefore, it cannot be added as income of the assessee. Thus, on these amounts of loans no adverse inference can be drawn and has rightly been deleted by the CIT(A). As noted above, already an amount of ₹ 46,95,000/- which has been added in the hands of the lenders has already been directed to be deleted by CIT(A) for which there is no dispute by the revenue. Thus, out of ₹ 1,55,10,000/-, sum of ₹ 79,90,000/- and ₹ 61,50,000/- (aggregating ₹ 1,41,40,000) could not have been added in wake of the aforesaid facts. Regarding other small loans also, we agree with the finding of the CIT(A) that the entire onus cast upon the assessee in wake of evidences filed have been fully discharged and accordingly, no addition could be made under the deeming provisions of section 68. - Decided against revenue.
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