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2022 (10) TMI 278 - AT - Income TaxUnexplained unsecured loans - genuineness of the transaction and creditworthiness of the lending company not proved - Case of the assessee was selected for limited scrutiny to ascertain the source of investment in property - HELD THAT:- The company from which appellant has claimed to have obtained loan is a private limited company, therefore, it is bound to abide by the provisions of Companies Act, 2013 and for giving any loan, it is governed by the provisions of section 186 of the Companies Act. However as per details available on record, it is not established that the company in question has complied with these provisions before giving loan to the appellant. Thus in context of the above facts on record the genuineness of the transaction and creditworthiness of the lending company remains unexplained. No interference is called for to the addition made by the AO as appellant has failed to establish the genuineness of the transaction and creditworthiness of the lender, which is a pre-condition to discharge onus lies on the appellant as per the provisions of section 68 of the Act. Accordingly the ground of appeal taken by the appellant is dismissed.
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