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2015 (3) TMI 969 - ITAT AGRAAddition u/s 68 - explained unsecured loans - CIT(A) deleted the addition - Held that:- in the remand proceedings the A.O. himself has accepted that “loans taken by Praveen Kumar (i.e. assessee) ……. appears to be genuine”. Thus, the A.O. himself has given a clean chit to the assessee and yet when the ld. CIT(A) deletes the addition in respect of the same, the A.O. is in appeal before us. It is not possible to reconcile these two conflicting stand taken by the A.O. As find that the ld. CIT(A) in a very detailed and analytical order, deleted the impugned addition for good and sufficient reasons. The loans were given from the overdraft bank accounts and no cash deposits were made before issuance of cheques. Identity of the creditors stands proved and the credit worthiness of the creditors is also reasonably established. In view of the fact that the genuineness of the borrowing/credit itself is established, there cannot be any good reason to dispute the same with respect to payment of interest either. As the ld. CIT(A) has rightly observed, genuineness of the unsecured loans under consideration does not remain undisputed in the light of the remand report submitted by the A.O. himself. We uphold the order of ld. CIT(A) and decline to interfere in the same. - Decided in fvaour of assessee.
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