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2022 (11) TMI 13 - ITAT MUMBAIAddition u/s. 68 - unsecured loan received by the assessee - HELD THAT:- The entire loan has been repaid by the assessee in A.Y.2011-12. The search in the case of Pravin Jain happened in Oct. 2013 wherein it transpired that he was engaged in providing accommodation entries through various entities and one such entity was M/s. Kunal Gems. The transaction of receipt of loan and repayment of loan had happened prior to the search action in the case of Pravin Jain. Once the loan transactions are settled, the assessee obviously will not have the latest address of the lender that to after a gap of few years. It is not the case of the revenue that the assessee is having regular transactions with M/s. Kunal Gems. Merely because the notice issued u/s.133(6) to M/s. Kunal Gems by the ld.AO had returned unserved, the genuine loan transaction like this carried out by the assessee cannot be doubted and disbelieved. Hold that assessee had duly proved all the three ingredients of section 68 of the Act Viz. Identity of lender, credit worthiness of the lender and genuineness of transaction. The interest claimed by the assessee in the sum of Rs. 15,016/- on the said loan has been allowed as deduction by the revenue in A.Y.2007-08. Hence, have no hesitation to direct the ld.AO the delete the addition made u/s. 68 - Appeal of the assessee is allowed.
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