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2018 (2) TMI 1872 - AT - Income TaxUnexplained credits - receipt of loans and gifts from closed relatives and friends - copy of the return of income filed by them, the computation of taxable profit, the balance sheet as well as loans confirmation and declaration gift letters filed - HELD THAT:- I find that all the loans taken by the assessee from these persons have wrongly been added u/s 68 of the Act. It cannot be said that there is no capacity of the creditors to lend such small amounts of ₹ 13,000/- or ₹ 15,000/- or ₹ 16,000/- when they are all income tax assessee’s. Even the gifts herein have been received from close relatives. The additions have been made on surmises of probabilities. No evidence is brought on record by the A.O. to contradict the evidence filed by the assessee. Such addition cannot be sustained. The assessee has proved the identity, creditworthiness as well as the genuineness of the transactions. Thus all these additions made u/s 68 are deleted Levy of interest u/s 234A and 234B - return income or assessed income - following the propositions of law laid down by the jurisdictional High Court in the case of AJAY PRAKASH VERMA VERSUS INCOME TAX OFFICER, [2013 (1) TMI 140 - JHARKHAND HIGH COURT] , I direct the A.O. to levy interest u/s 234A and 234B only on the income returned by the assessee and not on the income assessed by the A.O.
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