Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2011 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (12) TMI 511 - AT - Income TaxUnsecured loans - Held that:- The assessee had duly discharged its burden cast under section 68 of the Act so as to prove the three ingredients, namely, identity, credit-worthiness of the lenders as well as genuineness of the transactions. The Assessing Officer having regard to the material on record and in law proceeded on mere presumptions and surmises to disbelieve the explanation furnished by the assessee. Now in so far as the loans from 8 persons who were not produced before the Assessing Officer material on record was pari materia with the material led by the assessee qua the remaining 16 creditors, inasmuch as their confirmations, affidavits, loans having been received by account payee cheques, creditors being shareholders of the assessee company, etc., clearly point out that no adverse inference is justifiable. In this view of the matter, considering the entirety of circumstances, material on record and in law, we find that the Commissioner of Income-tax (Appeals) made no mistake in deleting the addition made by the Assessing Officer with regard to the 8 creditors who were not produced at the time of assessment proceedings.
|