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2012 (9) TMI 431 - AT - Income TaxLoan from creditor deemed as income u/s 68 – Weather assessee is under the obligation to prove source of sum deposited in the creditor’s bank account – Loan made by creditor through cheque - Credit entry shown in the bank statement of the assessee – AO contended that the source of the loan was sale of property - Assessee also submit PAN card, bank statement, copy of ITR for said year and proof of residential address and source of loan – Creditor receive an advance from another person to finance the loan to assessee – Held that:- It was not necessary that the amount advanced by the creditor had to be out of the current years income only, as the returned income of creditor shown off lesser income as compare to loan given to assessee. Bank statement of creditor clearly shows the deposit of said sum from another person. AO has neither conducted any inquiry, nor had any material been brought on record to doubt the source of the deposit entries in the creditor’s account. Assessee had duly discharged his onus of establishing the identity and credit worthiness of the creditor, as well as the genuineness of the transaction. The findings of fact recorded therein remained irrational. Decision against revenue.
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