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2014 (7) TMI 1289 - AT - Income TaxAddition u/s 68 - Creditworthiness & Genuineness of the loan creditors, when all the loan creditors are Income Tax Assessee holding Valid Permanent Account Number - Held that:- The assessee has submitted all the required relevant details. The assessee has also submitted confirmation of the loan creditors, copies of their Income tax returns and their balance sheets. We agree with the submissions of the ld. Counsel of the assessee that income of that particular year cannot be the only criteria for the capacity of the loan given. A perusal of the loan amounts reveal that the loan amounts were not large amounts and hence it cannot be presumed that person filing return showing a smaller income cannot have any saving. We find that when the details of the loan creditors, PAN nos. and their Income tax returns were available to the AO the ratio of the above judgment mandates that the addition cannot be made without making any enquiry from the AO of the loan creditors. Furthermore, the assessee has submitted all the necessary details. The loan amounts are individually not large amounts. Under these circumstances it cannot be presumed that the loan creditors did not have the capacity to make that loan. In these circumstances respectfully following the decision cited above we set aside the orders of the authorities below and decide the issue in favour of the assessee.
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