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2022 (3) TMI 1137 - ITAT AHMEDABADUnexplained cash credit u/s.68 - assessee company has obtained accommodation entry in the form of loans and advances from M/s Basant Marketing P. Ltd - HELD THAT:- The provisions of section 68 of the Act fastens the liability on the assessee to provide the identity of the lenders/investor/creditor, establish the genuineness of the transactions and creditworthiness of the parties. The identity of the party refers existence of such party which can be proven based on evidences. As such the identity of a party can be established by furnishing the name, address and PAN detail, bank details, ITR etc Genuineness of transaction refers what has been asserted is true and authentic. A genuine transaction must be proved to be genuine in all respect not merely on a piece of a paper. Genuineness of transaction can be proved by submitting confirmation of the party along details of mode of transaction but merely showing transaction carried out through banking channel is not sufficient. As such the same should also be proven by circumstantial surrounding evidences as held by the Hon’ble supreme court in case of Durga Prasad More [1971 (8) TMI 17 - SUPREME COURT] With respect to the identity of the party, we find that the assessee has furnished the details such as copy of bank statements, ITR and audited financial statement of the lender party. We also note there was assessment framed in case of lender parties which was challenged before the first appellate authority. Thus, from the above, there remains no doubt with regard to the identity of the party, as it has been proved beyond doubt. With respect to the genuineness of transaction and creditworthiness, we note that the assessee has submitted the copy of own bank statement as well as bank statement of party showing the transaction carried out through banking channel, audited balance sheet and copy of ITR. The assessee has also furnished affidavit of the director of the lander company. However the AO without pointing any defect in all these document or without bringing any cogent material on record in nutshell and without conducting independent enquiry disbelieved genuineness of transaction merely on the basis of statement given by one Shri Arun Dalimia before CBI. Therefore, in the given facts and circumstances, the genuineness of the transaction and the creditworthiness of the party cannot be doubted. Assessee is not the beneficiary in the loan transaction with M/s Basant Marketing Pvt. Ltd. Thus we can assume that the impugned transaction of loan received by the assessee which was subsequently repayable. We are of the opinion that, the transactions of the loan received by the assessee in the given facts and circumstances has been explained fully. Therefore, we hold that there is no infirmity in the order of the Ld. CIT-A. Hence, the ground of appeal of the revenue is hereby dismissed.
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