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2014 (1) TMI 934 - AT - Income TaxAddition made u/s 68 of the Act Unexplained cash credits Genuineness of the transaction Held that:- In the absence of any corroborative material brought on record, doubting of genuineness of transaction on mere conjectures and surmises is legally unsustainable - Whether a particular credit in the books of account of the assessee is genuine or not in terms of section 68 of the Act is purely a question of fact and has to be decided on the basis of facts and materials available on record. Relying upon RB Mittal Vs. CIT [2000 (8) TMI 54 - ANDHRA PRADESH High Court] - The assessee have established the identity of the creditor his creditworthiness and also genuineness of the transaction (having been routed through banking channels) with supporting evidence, the conclusion arrived at by the revenue authorities disallowing the claim of the assessee on mere conjectures and surmises cannot be sustained - Sri Gurmeet Ajit Singh Rajpal has the creditworthiness to make the gift thus, the department without having any material, direct or indirect, in its possession to substantiate the allegation that the gift is not genuine cannot make addition u/s 68 of the Act - there is no material before the department to show that the donor was either compensated by the assessee or assessees money was routed back to him by way of gift through the donor - the addition made by treating the gift of Rs. 45 lakhs as unexplained cash credit is without any basis and cannot be sustained order of the CIT(A) set aside Decided in favour of Assessee. Disallowance of interest payment either u/s.37(1) or u/s. 57(iii) of the Act Held that:- The assessee has not been able to establish as to how and in what manner the interest free advance of borrowed fund to Smt. Inderjit Kaur Bagga has benefitted to the assessee- That besides, the assessee has not established the fact that interest payment is directly related to or has any nexus with the interest income earned by the assessee - Hence, the deduction claimed by the assessee cannot be allowed considering the facts and circumstances of the case Decided against Assessee.
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