2014 (12) TMI 395 - MADRAS HIGH COURT

Deletion of unexplained credits u/s 69 – genuineness of the transaction proved by assessee - Held that:- The Tribunal was rightly of the view that the loans were given to the assessee through cheques and all the creditors have confirmed by appearing before the Additional CIT (Investigation) stating that they had advanced loans mentioned against their names to the assessee-company - the identity of the creditors could not be disputed - The only difficulty appears to be that some of them do not have PAN numbers, but that by itself should not be a reason to discredit their creditworthiness - all the creditors are agriculturists and they do not require any filing of returns of income and that is the reason they did not have PAN number - The Tribunal considered the minute details that were gone into by the CIT(A) and the explanation given by the assessee company that the entire loan amount was a genuine transaction - assessee had given plausible explanation for having taken a loan for a sum of ₹ 37.00 lakhs, for which, the assessee had produced evidences to prove the creditworthiness and genuineness of the transaction - the assessee had fulfilled the requirements u/s 68 – as such no substantial question of law arises for consideration – Decided against revenue.