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2024 (5) TMI 740 - ITAT AMRITSARAddition u/s 68 - Creditworthiness of the Loan Lender - Genuineness of the Transaction - according to the CIT(A) the genuineness of the transaction and creditworthiness of the loan lender has not been proved by the assessee - HELD THAT:- We are of the opinion that in the instant case the creditworthiness of the loan lender Mr. Patel has not been conclusively proved. Full enquiry could not be done by the AO regarding genuineness of the transactions and the creditworthiness of the lender, in absence of all documentary evidences before him. However, in view of the fact that the major part of the loan amount has remained unpaid till date, approximately seven years after receiving the loan (as per written submission of the Ld AR), it would be logical to conclude that the assessee and the loan creditor, are still connected with each other, and for all practical purpose the assessee should be still in a position to seek his cooperation, to establish the financial capacity of the loan creditor by obtaining and furnishing all necessary documents , like copies of the creditors tax returns in the country of his residence, bank statement containing full particulars with names. bank name, bank code, or any other papers and documents thought fit to establish the capacity of the loan creditor to advance the loan. Respectfully, enlightened by the observation of the Hon’ble jurisdictional High Court,in Tirath Ram Gupta [2006 (9) TMI 166 - PUNJAB AND HARYANA HIGH COURT] Jaspal Singh [2006 (9) TMI 143 - PUNJAB AND HARYANA HIGH COURT] and Kiran Bala [2014 (5) TMI 968 - PUNJAB & HARYANA HIGH COURT] we deem it fit and proper, that principles of natural justice would be served , if the matter is set aside to the file of the AO for examining the credit worthiness of the unsecured loan amount and the assessee shall furnish all necessary documents and evidences, as per provisions of law before the AO to establish the authenticity and creditworthiness of the loan creditor. Needless to say, the assessee should be allowed reasonable and proper opportunity in set aside proceedings, of being heard and for submission of all supporting documentary evidences required for establishing his case. Appeal of the assessee is allowed for statistical purposes.
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