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2014 (3) TMI 214 - ITAT HYDERABADDisallowance made u/s 68 of the Act - Unexplained income – Held that:- Originally the creditors advanced the money to M/s Nalla Malla Reddy Engg. College - the College got sanctioned a loan of Rs. 5.00 crores from SBI - After availing the loan on 08/10/2007, Nalla Malla Reddy Educational Society repaid the loan back to the parties - On receipt of money by the parties, they issued cheques on various dates ranging from 12/10/2007 to 16/10/2007 - the genuineness of the transactions are established as the transactions are routed through banking channels. The loans were received through a/c payee cheques, detail of which had been filed by the assessee by filing the copy of the bank a/c of the loan creditors - Thus where the return of income is filed by the creditors of the assessee and is accepted by the Department, and the payments are through a/c payee cheques the genuineness of the transaction cannot be doubted - the assessee has demonstrated by way of material evidence that the cash credits received by it are genuine and the assessee has fulfilled the conditions laid down u/s 68 of the Act – thus, the order of the CIT(A) set aside and the additions made u/s 68 of the Act also set aside on account of cash credits received by the assessee – Decided in favour of Assessee. Addition made - expenditure u/s 37(1) – Proper vouchers not furnished – Held that:- The assessee failed to substantiate the claim by producing documentary evidence to establish that the payment is genuine – thus, the order of the CIT(A) on the issue is confirmed – Decided against Assessee.
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