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2016 (2) TMI 712 - HC - Income TaxAddition u/s 68 - Held that:- Assessee has not been able to discharge the initial onus of proving the creditworthiness of the six lenders. The mere fact that the Assessee had produced the bank account statements of the six lending parties would not per se relieve it of the burden particularly if these bank accounts gave rise to further questions regarding the creditworthiness of the six lenders. For instance, at least three of the lenders were not paid any interest. Compared to the income disclosed in the returns, the amounts advanced as loan to the Assessee were disproportionately large. In particular one of the parties advanced a loan of ₹ 1.40 crore free of any interest. It is in these circumstances and upon a thorough analysis of the bank accounts of the six lenders that the CIT(A) came to the conclusion that their creditworthiness was not established. The question was not one of demonstrating the sources of the income of the lenders as much as establishing their financial capacity to advance the sums in question to the Assessee. - Decided against assessee
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