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2014 (8) TMI 758 - AT - Income TaxAddition of credit balance u/s 68 - Genuineness of transactions – Held that:- The AO was of the view that there are certain contradictions between the statement of the assessee and that of the creditors and the creditor has not proved the credit-worthiness of the person from whom he has borrowed the funds - assessee has demonstrated that the amount was repaid in cash, and another amount was paid through M/s. Sunil Castings Ltd. through M/s. Maheswari Brothers - From the relevant account copies from the books of M/s. Sunil Castings Ltd., and that of M/.s Maheswari Brothers, it could be find out that the assessee has stated the facts correctly. Non-appearance of ₹ 4,50,000 – Assessee claimed that it has been paid by cheque trough IOB – Held that:- The payment has been made to M/s. Singareni Collieries on behalf of M/s. Nasreen Old Iron Traders - the person who has advanced the money, namely, Shri Jani Miya, is a man of substance, as he has bid for a tender of ₹ 8 crores, and is having a OD limit of ₹ 20 lakhs - his creditworthiness is beyond doubt - as far as the assessee is concerned, the source for the credit has been established, by discharging the onus of proving the identity of the creditor, his credit worthiness and also the genuineness of the transaction - there is no justification for any addition in the hands of the assessee, and if at all, any addition is warranted, that has to be examined in the hands of the creditor of the assessee, viz. Shri Jani Miya - Decided against Revenue.
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